Grocery prices post biggest monthly jump since January 2023

Canadians were hit with another painful grocery bill last month, as the cost of food saw its largest monthly jump in almost three years.

Source: Wikimedia Commons

Canadians were hit with another painful grocery bill last month, as the cost of food saw its largest monthly jump in almost three years.

The annual price increase in November was 2.2 per cent, matching the increase in October.

“Lower prices for travel tours and traveller accommodation, in addition to slower growth for rent prices, put downward pressure on the all-items CPI,” reads Statistics Canada’s latest CPI report.

Higher grocery prices pushed the CPI up 2.6 per cent “for the third consecutive month,” while a smaller decline in the cost of gasoline helped to offset the increase.

Prices for food purchased from stores rose 4.7 per cent annually last month, following a 3.4 per cent jump in October.

The price hike was driven by an acceleration in the cost of fresh fruit, particularly berries, and other food preparations.

“In November, prices for fresh or frozen beef (+17.7 per cent) and coffee (+27.8 per cent) continued to be significant contributors to overall grocery inflation on an annual basis. Higher beef prices have been driven, in part, by lower cattle inventories in North America,” the report states.

“Coffee prices have been impacted by adverse weather conditions in growing regions and rose amid American tariffs on coffee-producing countries, which have contributed to higher prices for refined coffee.”

Grocery prices in November experienced the largest month-over-month increase since January 2023.

Month-over-month, the CPI increased 0.1 per cent, and 0.2 per cent on a seasonally adjusted basis.

Prices for services also increased 2.8 per cent last month, rising slightly slower than the 3.2 per cent jump seen in October.

Provincially, Ontario was the largest contributor to lower prices.

Annually, prices rose at a faster pace in five provinces, remained unchanged in two, and rose at a slower pace in the remaining three compared with October.

New Brunswick experienced the fastest annual rising pace at 2.7 per cent in November, following an increase of 2.1 per cent in October.

Higher prices for Internet access services (+5.1 per cent), rent (+5.2 per cent), and furniture (+5.2 per cent) were the three leading factors in the overall increase.

Nationally, rent prices rose at a slower pace in November compared with October. Although they still remained elevated, price growth slowed in most regions last month.

Meanwhile, prices for cellular services saw a 12.7 per cent increase in November, compared with a 7.7 per cent increase in October.