Canada’s inflation rate held steady in November but grocery prices rose at the fastest pace in nearly 2 years

Canada’s annual inflation rate remained unchanged at 2.2 per cent in November, but grocery inflation rose to its highest rate in almost two years, Statistics Canada said Monday.

Food inflation, which has largely outpaced the overall rate since August 2024, rose 4.7 percent on an annual basis last month compared with 3.4 percent in October.

This is the largest increase in grocery price increases since December 2023.

Fresh fruit – especially expensive berries – boosted growth, as did “other food preparations” (a category that includes mostly processed foods).

Coffee prices rose 27.8 percent in November on an annual basis, a continuing trend as coffee-growing countries face adverse weather conditions and US tariffs.

Meanwhile, fresh and frozen beef (up 17.7 percent last month) continued to weigh on inflation, with prices rising partly as cattle inventories are declining across North America.

Beyond the grocery store, services prices rose at a slower pace in November, as travel tourism and accommodation costs fell.

Rental prices also rose at a slower pace, rising 4.7 percent on an annual basis in November compared with 5.2 percent in October.

However, lower inflation for services was partly offset by higher prices for cellular services, which rose 12.7 percent in November compared with 7.7 percent in October.

The decline was partly due to fewer promotions on offer in November 2025 compared to the same period a year earlier.