Canada doesn’t just have a food inflation problem, it has a market structure problem – and it’s getting worse.

Over the last two years, we’ve been fixated on prices: why groceries cost more, why inflation remains stubborn, and why relief hasn’t materialized for many households. But we are missing the bigger issue. Canada’s economy is becoming increasingly K-shaped, and that is quietly undermining both affordability and innovation in our food system.

CHARLEBOIS: Disappearing middle distorting Canada’s food economy Back to video

The data is unequivocal.

Over the past decade, Canada’s income distribution has shifted quietly but meaningfully.

Data from Statistics Canada shows that the top 20% of earners increased their share of total income from roughly 40% in 2015 to nearly 43% in 2025, while the bottom 20% saw their share decline from about 5.6% to below 5% over the same period.

As a result, the middle 60%  – once the backbone of consumer demand –has steadily lost ground, with its share slipping by several percentage points.

At the same time, income growth is increasingly driven by financial assets, not wages. Higher-income households are benefiting from investment gains, while lower-income households are seeing their incomes lag behind rising costs.

The result is a clear divergence: one group moving ahead, another falling behind, and a middle class slowly eroding.

Erosion of middle class matters........

© Edmonton Sun