Food inflation is a significant concern for Canadians, according to the fall 2025 edition of the Canadian Food Sentiment Index from Dalhousie University’s Agri-Food Analytics Lab. The report indicates that Canadians are changing their diets and shopping habits in response to rising food costs. The index is based on a survey of approximately 3,000 Canadians, measuring their views on food affordability, spending, and trust in the food system.

As of fall 2025, food spending has increased slightly compared to spring 2025, primarily due to grocery costs. The average household now spends about $515 per month on food, with $406 spent at home and $109 dining out. One in five households reports spending over $600 monthly on groceries. The most common spending range is between $300 and $500, highlighting how persistent food inflation is pushing more households into higher spending brackets.

Affordability is a major concern for Canadians. The report notes that nutrition has become more important to consumers, while taste has decreased in priority. This shift suggests that Canadians are prioritizing health and cost over indulgence amid economic pressures.

The report also highlights a growing preference for local foods. More than half of the respondents, 51.9 percent, reported choosing local food often or always, a significant increase from 33.5 percent last year. The number of people who frequently select local products rose from 25.3 percent to 41.5 percent, while those who sometimes choose local dropped from 50.2 percent to 35.4 percent. This trend indicates that occasional buyers are becoming more consistent supporters of local products.

Canadians are adapting their shopping behaviors to cope with food inflation. The report identifies five popular cost-saving strategies, each used by at least 20 percent of respondents: seeking sales, using coupons, searching for deals online, shopping at discount stores, and purchasing fewer non-essential items like ice cream. Many Canadians are also cutting back on takeout and restaurant meals, with about one-third spending less than $50 a month on dining out.

Dietary patterns are shifting as well. There is a decline in omnivorous diets, down 6.9 percent, while the number of flexitarians and paleo eaters is increasing. Interestingly, vegetarian diets also saw a 3.5 percent decrease, likely influenced by rising meat prices.

Food insecurity has reached alarming levels, with 25.5 percent of Canadians experiencing it, according to the report. Although fewer Canadians are relying on savings or loans to buy food compared to last year, the situation remains concerning, particularly in New Brunswick, where borrowing increased by six percent.

Food costs have outpaced other financial concerns for Canadians. Over 80 percent of respondents indicated that food was the expense that increased the most in the past year. While utilities, housing, and household supplies are also significant concerns, the impact of rising food prices is greater than the combined effects of these categories.

Looking ahead, Canadians expect food prices to continue rising, but many are not anticipating the extreme increases predicted earlier in the year. Most respondents are preparing for moderate inflation of two to seven percent, indicating a mood of cautious optimism for 2026.