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Why Your Grocery Bill Keeps Rising — And What You Can Do About It

  It's not just gas. Canada's food inflation hit its highest pace in over a year in May 2026 — and produce prices are leading the charge. MoneySavings.ca  |  June 27, 2026 If your grocery receipts have been giving you sticker shock lately, you're not imagining things. Canada's official inflation figures, released by Statistics Canada on June 22, confirm that food prices are climbing faster than the overall cost of living — and have been for 16 consecutive months . If you're trying to figure out why your weekly shop costs so much more than it did a year ago, here's a plain-English breakdown — and some practical steps you can take to soften the blow. By the Numbers — May 2026 (Statistics Canada) Overall CPI: +3.2% year over year (highest since December 2023) Grocery prices (food purchased from stores): +4.3% year over year Fresh vegetables: +9.0% year over year Fresh fruit: +5.3% year over year Tomatoes: +45.2% year over year Lettuce: +10.7% year over year G...
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Bank of Canada Holds Rates Steady, Signals Pause Amid Strong Economy

 

                                            Tiff Macklem, Governor of the Bank of Canada

The Bank of Canada is widely expected to hold its benchmark interest rate at 2.25% in its final policy decision of 2025, marking the beginning of what economists believe could be an extended pause in monetary policy adjustments. After a year of multiple rate cuts aimed at supporting growth, the central bank now appears confident that the current level is sufficient to balance inflation pressures with economic resilience.

Recent data has reinforced this stance. Canada’s economy grew at an annualized pace of 2.6% in the third quarter, while the unemployment rate fell to 6.5% in November. Inflation also eased slightly, with October’s headline rate at 2.2%, down from 2.4% in September. These indicators suggest that the economy is performing better than anticipated, reducing the likelihood of further cuts in the near term.

Financial markets had already priced in a 93% chance of a rate hold, reflecting broad consensus among analysts that the Bank of Canada would step back after its easing cycle earlier this year. Governor Tiff Macklem previously signaled that rates were “at about the right level” to temper inflation without stalling growth.

The decision also comes as the U.S. Federal Reserve prepares its own rate announcement, underscoring the interconnectedness of North American monetary policy. While the Fed is expected to continue easing, Canada’s stronger-than-expected data has shifted speculation toward whether the next move could eventually be a hike rather than another cut.

This pause marks a turning point in 2025’s monetary policy trajectory. Having lowered rates four times earlier in the year, the Bank of Canada now appears set to hold steady into 2026, giving policymakers time to assess whether inflation remains contained and growth sustainable.

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