Import expenses fueling food price increases in Canada, according to BOC study

Bank of Canada Study: Import Expenses Largely Behind 2025 Food Price Surge

According to recent findings from the Bank of Canada, the sharp rise in food prices last year was driven almost entirely by higher import-related expenses rather than domestic issues. The central bank’s report, published Tuesday, revealed that food prices—excluding fruits and vegetables—rose by 3.1% in 2025. Of this increase, 2.7 percentage points were attributed to factors such as direct imports, imported ingredients, and global shipping fees.

Senior economist Olga Bilyk explained that the cost of imported food began climbing early in the year, a trend partly fueled by the notable decline in the Canadian dollar at the end of 2024.