Food prices continued to contribute to inflation in Canada during May 2026, with fresh fruit and vegetable prices increasing faster than overall inflation.
According to Statistics Canada, the annual inflation rate reached 3.2 per cent in May, while grocery prices were 4.3 per cent higher than a year earlier. Food inflation has now exceeded the overall inflation rate for 16 consecutive months.
Fresh produce recorded some of the largest increases. Fresh fruit prices rose 5.3 per cent year-on-year in May, compared with a 0.5 per cent decline in April. Fresh vegetables increased 9.0 per cent, up from 4.1 per cent in April.
© Statistics Canada
Among individual categories, tomatoes posted the largest increase, rising 45.2 per cent year-on-year in May, compared with 20.9 per cent in April. Statistics Canada attributed the increase to adverse growing conditions in Mexico and lower plantings linked to concerns over U.S. tariffs.
Grape prices were up 23.0 per cent year-on-year in May, compared with 4.4 per cent in April. Lettuce prices increased 10.7 per cent, up from 4.8 per cent the previous month. Other fresh vegetables rose 7.9 per cent, while berries, including cherries, increased 2.1 per cent after declining 7.4 per cent in April.
Doug Porter, chief economist at BMO, said: “Fruit and vegetables in general both popped in May. Usually that’s kind of the month where we get a little bit of relief.”
Consumers reported continued pressure from higher food prices. Toronto shopper Christina Notario said produce costs have become increasingly difficult to manage, while other shoppers reported comparing prices across multiple retailers in search of lower-cost options.
© Statistics Canada
The increase in food prices came as overall inflation was also influenced by higher fuel costs. Gasoline prices rose more than 33 per cent year-on-year in May following disruptions linked to the Middle East conflict and the closure of the Strait of Hormuz. Porter noted that excluding gasoline, inflation was 2.2 per cent.
Looking ahead, Porter said inflation could remain close to three per cent in the coming months, although lower fuel prices may ease some pressure. He added that current inflation trends remain concentrated in selected sectors rather than being broadly spread across the economy.
For more information:
Statistics Canada
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