Food Inflation Reached 7.3% in January

January 2026 brought unpleasant news for Canadian shoppers: food prices increased by 7.3% year-over-year, significantly outpacing many other categories of goods. For low-income Canadians and families with children, this rise is particularly painful. Food is not an expense that can easily be reduced without affecting quality of life, and grocery bills continue to grow even when households are already cutting back on non-essential spending.

While overall inflation showed signs of stabilization, food prices stood out as one of the fastest-growing components. This contrast makes the situation feel even more challenging for ordinary Canadians, as supermarket receipts tell a different story from broader economic indicators.

It is worth noting that food prices often rise in January due to seasonal factors. Winter logistics, higher transportation costs, storage expenses, and reliance on imported produce typically push prices upward at the beginning of the year. However, this year’s increase remains substantial for many households already feeling financial strain.

In January 2026, the Government of Canada announced the introduction of the new Canada Groceries and Essentials Benefit (CGEB). The program expands and renames the existing GST/HST tax credit and provides targeted financial support to help Canadians purchase groceries and essential goods. The initiative is designed to support more than 12 million low- and moderate-income Canadians. Payments are scheduled to begin in spring 2026.