Rising food prices continued to outpace headline inflation for the 16th straight month, Statistics Canada data showed, with no relief in sight for consumers as higher gas prices weigh on grocery bills.
Food inflation in May was up half a percentage point to 4.3 per cent annually, pushed higher by expensive fruits and vegetables, the agency said on Monday. Overall inflation came in at 3.2 per cent annually last month.
Consumers paid more for broccoli, tomatoes, cauliflower and lettuce at the grocery store checkout, as prices for fresh vegetables were up nine per cent compared with May 2025.
Tomato prices jumped 45.2 per cent amid poor weather in Mexico and a drop in planted acreage as the U.S. imposed tariffs on the fruit, the agency said.
“Tomatoes have been in a perfect storm,” said Michael von Massow, food economist at the University of Guelph.
He said it highlights the issues with resilience in the country’s food system, which relies on limited sources for imports, particularly in the winter months.
StatCan said prices for fresh vegetables were up 5.5 per cent month-over-month — the largest increase for May since 2008 — after it fell 3.9 per cent in April.
Meanwhile, berries and grapes drove fresh fruit prices higher by 5.3 per cent from a year ago.
RBC analyst Irene Nattel said in a note that while fuel prices are off their recent highs, diesel prices remain a notable headwind, which is up more than 22 per cent year-over-year. Recent weakness in the Canadian dollar is also affecting grocery imports.
Von Massow said transportation represents about 10 to 15 per cent of retail fruit and vegetable prices on average because of long travel distances and shorter shelf life.
Fresh produce prices are pushed higher as gas prices remain elevated amid the ongoing conflict in the Middle East, which effectively blocked the Strait of Hormuz, a crucial waterway for oil tankers and disrupted a fifth of global energy supply.
“Transportation costs are driving that broader increase across the board in the category and there’s some variation depending on how far it comes and what kind of year they’ve had (in yields),” von Massow said.
StatCan said gas prices rose 33.2 per cent year-over-year last month. The agency said last month marks the most consumers have paid for gasoline since June 2022, when Russia’s invasion of Ukraine drove supply uncertainty.
Von Massow said some fresh produce prices could ease as Canada heads into the growing season.
Tomatoes, however, are unlikely to see a significant drop until late July or early August, when the harvest season arrives, he said.
“You have to also consider that demand for tomatoes goes up in the summer,” he said.
“We’re barbecuing more, we’re making more fresh salads, and so demand for tomatoes goes up. That also increases the price.”
This report by The Canadian Press was first published June 22, 2026.
