This will be hard to digest for Canadians already struggling to make ends meet: Your food bills will be going up in 2026.
That’s the main takeaway from the 2026 Food Price Report.
This year’s version of the annual report, produced by Dalhousie University in collaboration with other universities across Canada, was released on Thursday.
CityNews spoke to the report’s lead author, Dalhousie University food researcher Dr. Sylvain Charlebois, ahead of its publication.
“We are expecting food prices to increase anywhere between four and six per cent, so for an average family of four in Canada we are expecting their food bill to go up by as much as $1,000 for 2026 – $994 to be exact,” Charlebois forecasted.
A family of four can expect to fork out $17,571.79 on food in 2026, the report states.
Those 2026 projections continue a trend of rising food prices in Canada, with an overall 27 per cent increase over the past five years.
So, what’s driving food prices up?
The ongoing trade dispute with the United States is one factor, the report stresses, along with shifts in the food manufacturing and retail landscape, labour markets, policy changes, the Canadian dollar outlook, and climate change.
“The inflationary impacts of tariffs and counter-tariffs will continue to be felt next year as trade tensions reshape the economic landscape,” the report outlines. “The dispute has created uncertainty in the market, as well as supply chain disruptions and declining demand for Canadian exports.”
But there is hope that some of those pressures may be alleviated.
“Canada is actively strengthening relationships with other international trading partners to build resilience and global competitiveness,” the report continues. “Canada’s removal of almost all counter-tariffs on U.S. imports should also help ease upward inflationary pressures on goods.”
Where’s the beef?
When it comes to what food items will see the biggest price hikes, beef is at the top of the list. According to Charlebois, climate change is making steak unaffordable for many.
“With meat it’s basically climate change, so beef is the big problem … we’ve been dealing with this drought for a while, it’s costing more to feed animals and ranchers have actually sold off their herds without replenishing (them) so there’s just no inventory in both Canada and the U.S. and that’s why we’re seeing more Australian and New Zealand beef in Canada,” he explained.
With high beef prices, many are turning to chicken, but the report projects chicken prices will also be under pressure due to underproduction – a factor worsened by avian flu outbreaks.
Coffee prices are also expected to go up.
“Coffee is becoming extremely expensive, and we are expecting coffee to continue to rise in 2026,” Charlebois said.
Climate change, again, is a factor in the java jump.
“It’s more difficult to provide Arabica beans due to weather patterns that have actually impacted yields in many parts of the world,” Charlebois explained.
When it comes to what food items may stay steady, or even go down in price, Charlebois says the produce section is where to look.
“Actually, produce is not bad … the freezer aisle, which got more expensive in 2025, we are expecting some stable prices there. Dairy and bakery, also we are not expecting prices to explode … for everything else, including restaurants by the way, we are expecting higher prices.”
Charlebois notes that lower alcohol consumption rates, while good for public health, aren’t great for the health of the restaurant sector.
“The situation with restaurants is really complicated because obviously you are seeing fewer people going to restaurants, there’s going to be a lot of closures, meaning less competition. And also the fact that people are drinking less, and alcohol is a big money maker for the food service industry.
“If you’re drinking less, they are going to have to figure out another way to make more money, and one way to do that is to revise menu prices.”
