These 5 grocery staples have skyrocketed in price this year. Here’s why

Grocery prices have been going up faster than overall inflation for more than a year, with the exception of August. 

Economist Jim Stanford and agriculture professor Mike von Massow say a combination of factors is driving food prices higher, including climate, immigration policies, tariffs and retailer pricing. 

Using Consumer Price Index data from Statistics Canada, Marketplace looked at some of the biggest year-over-year food price increases in 2026 and what was driving them.

Where’s the beef?

In January, the price of ground beef increased by more than 10 times the rate of general inflation. (Bryan Eneas/CBC)

Here’s why:  

• Record-low cattle herds: Dry weather in western Canadian Prairies reduced grass and hay supplies.
• This forced ranchers to downsize or liquidate their herds, driving Canada’s cattle inventory to its lowest level in decades. 
• Raising livestock has become more expensive because of higher prices for grain feed, fuel and labour.
• Strong consumer demand: Despite sticker shock at the meat counter, demand for beef remains high, according to Canada Beef, a national not-for-profit organization that promotes Canadian beef products. Statistics Canada also reported that strong beef demand helped drive slaughter cattle prices higher across Canada in May. 

Chicken: The push for protein

Stanford, the director of the Centre for Future Work,  says skyrocketing beef prices have pushed some shoppers toward a cheaper protein option.

Here’s why: 

• Consumers shifting from beef to chicken as a cheaper protein option.
• Limited supply: There weren’t enough chicks available to meet increased demand, putting upward pressure on retail prices.
• Avian influenza: Bird flu contributed to reduced supply of chicken.
• Prices temporarily rose as demand increased and supply fell.

“That’s all been compounded by the fad around protein,” said Mike von Massow, a professor at the University of Guelph’s Ontario Agricultural College. “Everyone’s saying, I need to eat more protein. So protein prices are going up partly because of scarcity and partly because people are just conscious of eating more protein.”

Economist Jim Stanford and Professor Mike von Massow explain the reasons behind some of the biggest food price increases this year. (Joe Fiorino/CBC)

Tomato prices soar

Here’s why: 

• Reduced U.S. farm labour: Changes to migrant labour in the U.S. affected planting.
• Shift in production to Mexico: Poor weather and dry conditions reduced crops there.
• Transportation costs: Higher diesel costs increased the cost of moving fresh produce to Canada.  
• U.S. tariffs on Mexican tomatoes: Mexico represents the bulk of Canada’s imported tomatoes.

Experts say the jump in tomato prices was partly due to Trump administration immigration policies. (CBC/Radio-Canada)

“Donald Trump put large tariffs on Mexican tomatoes into the U.S,” said von Massow. “So they planted fewer tomatoes … and then had very dry weather. That sort of was kind of a double whammy.”

Other produce: 

Here’s why: 

• California supply: Much of Canada’s lettuce comes from California, where growers have faced water issues, including drought.
• Plant disease: Impatiens necrotic spot virus (INSV) has affected lettuce production in California.
• Reduced production: Lower supply translated into higher prices.

How about grocery retailers? 

The Competition Bureau has been examining the role of major grocers for years.

In 2023, it called for more competition to help lower prices. Its recommendations included supporting new types of grocery businesses, such as online and international grocers; limiting property restrictions that block competition in some communities; and introducing standardized unit pricing — such as per 100 grams or per litre — so shoppers can more easily compare prices. 

Last month, the Bureau reported progress on those recommendations, pointing to stronger competition laws and new rules in Manitoba, including a ban on new property restrictions that major grocery chains use to prevent competitors from opening locations nearby. Manitoba is also looking at replicating unit-pricing laws that already exist in Quebec.

But the Bureau said food prices remain a concern and that more action is needed.

This month, the bureau launched another investigation into supplier and retailer policies that restrict the advertising of discounts, raising concerns that Canadians are missing out on grocery deals. 

The Retail Council of Canada, which represents most major grocers, told Marketplace that retailers make just two to four cents in profit on every dollar of sales for food and that any profit growth is coming from non-food sales. 

Government response

In January, the federal government introduced the Groceries and Essentials Benefit for Canadians whose incomes fall below a specific amount.

In June, it announced a National Food Security Strategy that includes more than $3 billion in investments intended to address affordability, sustainability and resilience in Canada’s food supply. 

Minister of Agriculture Heath MacDonald says the government’s plan to lower grocery prices will take a while to implement. (Aaron Adetuyi/CBC)

Minister of Agriculture Heath MacDonald initially declined CBC’s requests for an interview, but we caught up with him in Charlottetown last week.

“It’s an overall plan. This  isn’t going to happen overnight,” he said when asked when Canadians will see lower prices. 

“What we need to do as a country is start building out for the future, to make sure that when we are faced with these challenges, we can handle it a lot better than we have in the past,” he said. 

He added that the plan includes $12.9 million per year to strengthen the Competition Bureau and Competition Tribunal and their ability to “tackle a larger share of issues … and help bring down consumer costs.”