Food Price Forecast for 2026.
Prices continue to rise.
The 16th edition of Canada’s Food Price Report was released by Dalhousie University on December 4. The report predicts continued price increases next year – amounting to an estimated additional $994.63 for a family of four compared with 2025 prices. Food prices are forecasted to rise 4%-6%, and the report notes that food costs are now 27% higher than they were five years ago
Alberta, New Brunswick, Nova Scotia, Ontario and Quebec can expect above-average food-price increases, potentially worsening regional disparities in need. British Columbia and Manitoba are anticipated to have below-national-average food price increases.
The report forecasts a mixed economic outlook in 2026:
Inflation is expected to ease to around 2%, but food prices could rise by as much as 6%, while GDP growth slows
Meat prices are projected to increase by 5% to 7%, with chicken prices expected to spike due to supply-management issues
Vegetables are projected to increase by 3% to 5%, and dairy and egg products between 2% and 4%
Ongoing U.S. trade tensions continue to create economic uncertainty, particularly as the CUSMA renegotiation begins in earnest
Potential labour shortages may occur from Temporary Foreign Worker Program reforms
Mandatory standardized nutrition labelling will take effect in the new year for any food that surpasses a pre-determined threshold of sodium, sugar and/or saturated fat – the potential impact on food prices is not certain.
Several policy and market changes will shape the year, including interprovincial trade improvements under the One Canadian Economy Act, the full implementation of the Canada Grocery Code, and new mandatory front-of-pack nutrition labelling. The cost of protein, particularly chicken, is expected to rise, even as beef imports expand to help stabilize supply.
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Impact to the Food Bank Network
With food prices continuing to rise, demand for food banks is likely to keep growing – both in the number of clients served and the frequency of their visits. In addition, food banks should anticipate tighter supplies and higher costs for protein, especially beef and chicken. Insights from the network survey, combined with food bank usage forecasts, indicate that organizations may need to increase budget allocations for food purchasing and transportation.
The full report can be downloaded here.