Why Your Groceries Cost More
Grocery bills have surged 11% in five years, outpacing wages and overall inflation
Canadian families are spending more at the grocery store than ever before, with food prices rising 11% over five years—far outpacing wage growth and general inflation. This data story breaks down why your groceries cost more, which food categories are driving the surge, and whether paycheques are keeping up.
The Grocery Bill Squeeze: Food Prices Outpace Wages
Food prices have climbed 11.2% over the past five years, from an index of 31,221.9 in January 2021 to 34,735.5 in January 2026. Meanwhile, average hourly wages rose just 63% over the same period, from $187.70 to $306.00. The gap between food costs and wages has widened, leaving many households feeling the pinch at the checkout.
Food prices vs. wages (2021-2026)
Source: Statistics Canada, Table 18,100,004
Inflation’s Uneven Burden: Food Costs Rise Faster Than Everything Else
While food prices surged 11.2% over five years, the overall Consumer Price Index (CPI) rose just 19.4%—from 138.9 to 165.9. This means food inflation has outpaced general inflation by nearly 2:1. The Bank of Canada’s aggressive rate hikes in 2022-2023 aimed to curb inflation, but food prices remained stubbornly high due to supply chain disruptions and global commodity shocks.
Food inflation vs. overall CPI (2021-2026)
Source: Statistics Canada, Table 18,100,004
Which Groceries Are Getting Pricier? Meat and Dairy Lead the Surge
Meat prices have seen the steepest rise, with the index jumping from 31,873.4 in 2022 to 34,735.5 in 2026—a 9% increase in just four years. Dairy and eggs also climbed sharply, reflecting higher feed costs and supply constraints. Meanwhile, bakery and cereal prices rose more modestly, up 6% over the same period, as global wheat markets stabilized.
Food category inflation (2022-2026)
Source: Statistics Canada, Table 18,100,004
Wages Are Rising, But Not Fast Enough to Cover Groceries
Average hourly wages grew 63% over five years, from $187.70 to $306.00. However, this increase hasn’t kept pace with food inflation, which rose 11.2% in the same period. The gap is most pronounced for lower-income households, where grocery spending consumes a larger share of income. Even with wage growth, many Canadians are adjusting budgets to afford basics.
Wage growth vs. food inflation (2021-2026)
Source: Statistics Canada, Table 18,100,004
The Pandemic and Global Shocks: Why Food Prices Spiked
The COVID-19 pandemic disrupted supply chains, labor shortages, and transportation bottlenecks, driving up food production and distribution costs. Russia’s invasion of Ukraine in 2022 further destabilized global food markets, pushing up prices for wheat, fertilizer, and energy. While some supply chain issues have eased, lingering effects continue to keep grocery bills high.
Food price trend (2021-2026)
Source: Statistics Canada, Table 18,100,004