A new report says Canadians are facing a new squeeze: transportation costs are soaring, familiar grocery-saving tactics are losing momentum, and more households are tapping savings or borrowing to pay for food.
Here are the key findings from the latest Canadian Food Sentiment Index from Dalhousie University’s Agri-Food Analytics Lab, supported by Caddle Insights:
1. Transportation costs are the new pressure point
Food remains the top cost concern (76.7%), but transportation has jumped to second place: 41.2% now rank it among the expenses rising most, up from 20.2% just six months earlier. Nearly eight in 10 (79.2%) say their transportation costs increased over the past year.
2. Grocery-saving strategies are losing steam
The six leading saving strategies are less frequently reported than two years ago. Coupon use fell from 30.5% to 20.3%; shopping at cheaper stores dropped from 24.9% to 21.0%. Seeking sales remains the leading tactic at 45.5%. Consumers may be reaching the limits of how much they can adjust.
“Canadians have spent years adapting their shopping habits to stretch their food dollars.” said Dr. Stacey Taylor, Assistant Professor of Accounting, Telfer School of Management, University of Ottawa. “The decline in several saving strategies suggests fatigue may be setting in. Households have limited time and energy to chase every deal, especially when getting to the store is becoming more expensive.”
3. Store brands are becoming a lasting habit
Choosing generic and private-label foods recorded the largest two-year gain among the value-based behaviours measured, rising from 2.91 to 3.47 on a five-point frequency scale. This suggests store brands are becoming a routine choice, even as inflation-driven brand switching has eased.
4. Food inflation feels much higher than it is
Canadians perceived food inflation at 7.9% over the past year, far above the 2.8% official grocery inflation rate used as the report’s August reference. More than half (53.0%) believed food prices rose at least 8% since last year and one in four (25.1%) expects increases above 10% in the year ahead.
“Slower inflation does not mean food has become affordable again. Canadians are still feeling the cumulative rise in prices, which helps explain why their inflation perceptions remain elevated. Rising energy costs add to household pressures, keeping affordability in the driver’s seat when making food choices. The stabilization of grocery shopping behaviours suggests that some cost-saving adjustments are becoming lasting habits,” said Dr. Armağan Özbilge, Assistant Professor, Faculty of Management, Dalhousie University.
5. One in three Canadians is drawing on savings or borrowing to eat
Nationally, 32% reported using savings or borrowing money to buy food, up four percentage points year over year. Saskatchewan recorded the highest rate (36%), followed by Alberta (35%) and Ontario (34%). Prince Edward Island was lowest (14%), although its small sample requires caution; Nova Scotia followed at 24%.
6. Dining out is driving the latest food-budget increase
Estimated combined monthly food spending reached $521, up from $497 in Spring 2025. Over the latest six months, grocery spending edged down from $412 to $409, while dining out and takeout rose by 3.8%.
Millennials lead food-away-from-home spending at $132.48 per month, ahead of GenX ($116.54).
“Overall, the results show that Canadians are not just confronting higher food prices; they are changing how they live with them. Transportation is taking a bigger bite, savings strategies are wearing thin, and one in three people is turning to savings or credit to put food on the table. That is a warning sign for household financial resilience,” said Dr. Sylvain Charlebois, Senior Director, Agri-Food Analytics Lab
Released twice a year, the Index tracks how Canadians perceive food prices, manage household spending and change their food purchasing habits. The Fall 2026 edition surveyed 2,998 Canadians and compares trends across five waves since Fall 2024.
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