Canada’s inflation rate eased slightly in 2025, but food costs were still higher, according to new annual data from Statistics Canada on Monday.
The Consumer Price Index increased 2.1% on an annual average basis in 2025, down from a 2.4% rise in 2024. While that marked the smallest annual increase since 2020, StatCan said prices remained historically high, with overall consumer costs nearly 20% higher than five years ago.
Food inflation was one of the most persistent pressure points for Canadian households. On an annual average basis, grocery prices rose 3.5% in 2025, accelerating from a 2.2% increase the year before.
Canadians paid 20.3% more for coffee and 7.1% more for confectionery products, reflecting global supply challenges and trade-related costs.
Meat prices also climbed at a faster pace. On an annual average basis, meat prices increased 5.8% in 2025, following a 3% rise in 2024. The biggest contributor was fresh or frozen beef, which jumped 13.5% year over year. The agency attributed much of that increase to historically low cattle inventories across North America, which tightened supplies.
Fresh fruit prices rebounded in 2025, rising 2.5% after declining the previous year.
Beyond food, inflation trends were mixed across the economy. Prices for services rose 3.1% in 2025, slower than the 4.1% increase recorded in 2024. Goods inflation, meanwhile, picked up modestly. Prices for goods rose 0.8% on an annual average basis, compared with a 0.3% increase in 2024.
Energy prices provided some relief for consumers. On an annual average basis, energy prices declined 5.7% in 2025, led by an 8.6% drop in gasoline prices. StatCan said the removal of the consumer carbon price in April played a significant role, also contributing to an 8.4% decline in natural gas prices.
