Blaming the U.S. won’t cut it. Canada’s food inflation crisis is largely a result of Ottawa’s poor policy choices

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It was expected, but still jarring. In April, food inflation in Canada surged to 3.8 per cent—a full 2.1 percentage points above the national inflation rate and nearly double the U.S. rate of two per cent. Once again, food is the primary driver behind headline inflation, amplifying affordability concerns across the country.

But this isn’t just a story of global disruption or seasonal cycles. It’s increasingly clear that Canada’s food inflation is largely homegrown—a direct result of domestic policy missteps, particularly tariffs and protectionist procurement practices.

Since March, when both Canada and the United States introduced a new round of tariffs, the difference in outcomes has been striking. U.S. food inflation has continued to cool, while Canada’s has nearly tripled over the same period—a divergence that should raise serious red flags in two integrated economies.

Drill into the 3.8 per cent figure and the underlying pressure becomes obvious. Meat prices climbed 5.8 per cent year-over-year, with beef up a staggering 16.5 per cent. Egg prices rose 3.9 per cent, while fresh fruit and vegetable prices increased by five per cent and 3.7 per cent, respectively. These are not one-off anomalies—they reflect sustained cost increases made worse by flawed policy.

A shift in tariff policy may help stabilize food prices, but the damage has been done.
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