Rising costs at the grocery store were causing fresh pain for consumers in November even as Statistics Canada reports the overall inflation rate held steady in the month.
The agency said Monday that annual inflation rose 2.2 per cent in November, unchanged from the previous month and a tick below economists' expectations.
Grocery prices were up 4.7 per cent year-over-year in November — a jump from 3.4 per cent in October and the highest level recorded since December 2023.
Rising prices for fresh berries were driving the acceleration in November, StatCan said, though costs were also rising in a broad category that includes prepared foods like soup and potato chips.
Prices for fresh or frozen beef were up 17.7 per cent in November amid lower cattle inventories across North America, the agency said. United States tariffs, combined with tough weather conditions, are putting strain on coffee-producing regions, driving the cost of refined coffee up 27.8 per cent annually.
Gas prices are down year-over-year but rose 1.8 per cent on a monthly basis in November thanks largely to oil refinery disruptions, StatCan said.
Meanwhile, consumers were finding some relief on travel costs last month.
StatCan said the price of travel tours fell 8.2 per cent year-over-year in November as fewer Canadians travelled to the United States.
Traveller accommodations also fell 6.9 per cent annually. StatCan said the year-over-year drop was particularly pronounced in Ontario, which in November 2024 saw Toronto play host to Taylor Swift’s Eras tour concerts.
Rent price growth was also slowing in November, offset by accelerating costs for cellular services.
The November inflation figures come after the Bank of Canada held its benchmark interest rate steady at 2.25 per cent last week.
CIBC senior economist Andrew Grantham said in a note to clients Monday that a series of core inflation metrics declined somewhat in November, suggesting some easing in underlying price pressures.
He said core inflation is "still too high to allow further interest rate cuts," but it's also not strong enough to warrant calls for a hike in 2026.
"We continue to forecast the Bank of Canada to hold its overnight rate steady at its current level throughout next year," Grantham said.
TD senior economist Leslie Preston said in a note that she's expecting some "choppiness" in the coming months for inflation as last year's GST holiday starting mid-December distorts the annual comparison.
Preston said TD overall expects inflation to moderate back toward the Bank of Canada's two per cent target over the coming year.
This report by The Canadian Press was first published Dec. 15, 2025.
