While Canada’s Consumer Price Index rose 2.2 per cent year over year in November, the lived experience for many households tells a more difficult story. Grocery prices climbed 4.7 per cent compared with the same period last year, marking the largest increase since December 2023. As a result, everyday food costs are rising far faster than overall inflation, placing renewed pressure on household budgets at a time when seasonal spending is already elevated.
The widening gap between headline inflation and essential expenses has become increasingly visible as Canadians move through the holiday season. For many households, higher grocery bills combined with year end obligations are leaving little room to absorb additional costs, setting the stage for financial strain as the calendar turns to January.
According to the Credit Counselling Society, the financial stress associated with rising grocery prices in Canada is already translating into higher demand for support. In November 2025, the number of Canadians reaching out for credit counselling increased by 11 per cent compared with November 2024. Those seeking help were carrying heavier debt loads, with average unsecured debt reaching $35,000, up from $31,000 a year earlier.
Peta Wales, President & CEO of CCS, says the data highlights a growing disconnect between inflation headlines and household realities. She states, “Even though inflation appears stable at 2.2 per cent, many Canadians are still feeling the pinch in their daily lives. Rising grocery costs and holiday spending are leaving households with less flexibility to manage debt, and we’re seeing people reach out earlier than ever for guidance.”
This earlier engagement is notable because November is typically a quieter period for counselling services. Historically, demand surges after the holidays, once credit card statements and deferred payments arrive.
January Pressures Expected to Intensify
The current uptick in counselling requests is being viewed as an early warning signal for the new year. CCS notes that demand for support tends to spike sharply in January, following the accumulation of holiday related expenses. Last year, the number of Canadians seeking help rose 51 per cent from December to January.
With more people already contacting CCS in the fall, the organization expects financial strain to reach unprecedented levels heading into 2026. Isaiah Chan, Vice President of Programs & Services at CCS, explains, “Historically, counselling demand spikes in January after the holiday bills arrive. Last year, we saw a 51 per cent jump from December to January. With more Canadians already seeking help this year, it’s clear that financial strain will reach unprecedented levels heading into the new year.”
For retailers and financial service providers alike, the trend underscores how rising grocery prices in Canada are reshaping consumer behaviour, particularly as discretionary spending gives way to a sharper focus on essentials and debt management.
Budget Strain Meets Holiday Spending
The convergence of higher food prices and holiday expenses is creating a difficult balancing act for many households. As grocery bills absorb a larger share of monthly income, Canadians are left with less flexibility to manage existing debt or unexpected costs. This is particularly challenging for consumers who rely on credit to smooth cash flow, as higher balances quickly translate into mounting interest charges.
CCS counsellors report that many clients are struggling with large purchases as well as with everyday expenses such as food, utilities, and transportation. The pressure is prompting more Canadians to seek guidance before missing payments, rather than waiting until financial challenges become unmanageable.
Practical Guidance to Reduce Financial Stress
In response, CCS is encouraging Canadians to take proactive steps before January arrives. Rather than making abrupt changes after bills come due, counsellors advise reviewing household budgets now to prioritize essential obligations such as rent, utilities, and minimum debt payments. Adjusting discretionary spending, including last minute holiday purchases, can help ease short term pressure.
The organization also points to grocery planning as a practical area for savings. Building a rotation of affordable meals and snacks can help households manage food costs more predictably, especially as rising grocery prices in Canada continue to outpace broader inflation. At the same time, CCS cautions against adding high interest debt to cover everyday expenses, noting that reliance on credit can intensify the post holiday financial crunch.
Reaching out for guidance early is another key recommendation. Even modest adjustments made before the new year can help prevent late fees, missed payments, and escalating debt balances in January.
Early Action Can Ease the January Crunch
Mark Kalinowski, Financial Educator & CCS spokesperson, emphasizes the importance of timely intervention. He says, “We’re already seeing Canadians struggling with everyday expenses on top of holiday bills. By reviewing your budget, prioritizing essentials, being cautious with buy now, pay later options, and seeking guidance early, you can stay on top of payments and reduce stress when January bills arrive.”
CCS is encouraging Canadians to assess their financial position now, explore payment arrangements with creditors if necessary, and seek free, confidential guidance before year end. Taking these steps early may help households navigate the ongoing impact of rising grocery prices in Canada while avoiding deeper financial strain in the months ahead.
Canadians seeking assistance can speak with a certified credit counsellor by visiting nomoredebts.org or calling 1-888-527-8999.
About the Credit Counselling Society
The Credit Counselling Society is a non profit organization dedicated to helping consumers better manage their money and debt. CCS provides free and confidential credit counselling, objective debt repayment options, budgeting assistance, and financial education services to Canadians nationwide. More information is available at nomoredebts.org.
