Canada’s food inflation rate eased to 5.4% in February 2026, down from 7.3% previously. At first glance, this looks like progress. But the reality behind the numbers suggests Canadians shouldn’t celebrate just yet.

Food inflation remains 3.6 percentage points above overall inflation, which means groceries are still becoming more expensive faster than most other goods in the economy. While the pace of increase has slowed, the pressure on household budgets has not disappeared.

CHARLEBOIS: Canada's food inflation slowing — but the squeeze isn't over Back to video

Canada also continues to stand out internationally — and not in a good way. Among the G7 countries, Canada still posts the highest food inflation rate. According to Trading Economics, Canada sits at 5.4%, followed by Japan at 3.9% (January 2026), the United Kingdom at 3.6% (January 2026), the United States at 3.1%, Italy at 2.6%, France at 2.0%, and Germany at just 1.5%. Even after the recent decline, Canada remains firmly at the top of the G7 ranking and Canada also has the largest gap between general and food inflation.

Some of this year’s data is influenced by the GST holiday introduced in........

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