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Canada food retail prices continue to outpace inflation

The figures for May come as Canada’s anti-trust watchdog is to study competition across the country’s food-and-drinks supply chain.

Dean Best June 22 2026

The price of food bought from stores in Canada again rose faster than headline inflation last month, government data shows.

According to a breakdown of Canada’s Consumer Price Index (CPI) figures for May, the inflation metric for food purchased from stores rose 4.3% year over year in May, up from 3.8% in April.

It was the 16th consecutive month the metric had outpaced headline inflation on a year-over-year basis, the Canadian government said.

Last week, the country’s Competition Bureau announced plans to review competition across the country’s food-and-drinks supply chain. It cited a “sharp” rise in food prices in Canada in recent years that had “put significant pressure” on consumers.

Higher prices for fresh fruit and fresh vegetables contributed to the acceleration in May.

Prices for fresh fruit rose 5.3% year-on-year last month, versus a 0.5% fall in April. The step-up in prices was mostly driven by berries and grapes, the data showed.

Meanwhile, prices for fresh vegetables increased 9% in May compared to 12 months earlier following a 4.1% rise in April. The researchers pointed to higher prices for broccoli, cauliflower, tomatoes and lettuce. Tomato prices jumped more than 45% in May due to supply contractions amid poor weather in Mexico and a reduction in planted acreage following the implementation of US tariffs, the Canadian government said.

The overall CPI rose 3.2% year over year in May, up from a 2.8% increase in April. Fuel prices were also a factor.

Canada’s Competition Bureau will assess three parts of the chain: production and processing; transport and distribution; and retail pricing practices.

In 2023, the competition watchdog called for increased competition in Canada’s grocery market, pointing to the difficulty new retailers face in entering the market.

The bureau has invited views from members of the public and organisations with experience of the food supply chain. A final report is due in the first half of next year.

In January, the Canadian government outlined a series of measures aimed at easing food inflation pressures on households and supporting businesses across the food supply chain.

Earlier this month, Canada Prime Minister Mark Carney set out a food security strategy to boost local food production.

Ottawa wants to reduce Canada’s reliance on imports, foster competition in the grocery sector and cut red tape in the agriculture supply chain.

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