Why are food prices still rising?
Published Date: July 13, 2026
Canadians continue to feel pressure from the rising cost of living, and food is one of the most visible examples. We know people are asking why food prices remain high and what Loblaw is doing to help.
The facts:
Food prices are affected by many costs long before products reach our shelves.
Most of those costs are outside a grocer's control, including:
commodity prices (e.g. resin, coffee, cocoa, rice, sugar, etc.);
crude oil, fuel and transportation costs, which can be affected by international conflicts like those we've recently seen in the Middle East;
weather fluctuations and climate change affecting fresh produce;
the value of the Canadian dollar;
tariffs on imported products.
Loblaw challenges supplier cost increases, ensures they are tied to legitimate cost pressures where possible, and works to reduce, delay, avoid or offset impacts for customers.
While Loblaw cannot control most of the costs in the food system, we do fight hard for value. We help customers save through promotions, PC Optimum, No Name and other control brands, discount stores, price-held items and smart swaps.
The percentage of profit Loblaw earns selling groceries has remained steady for many years, including since the start of COVID.
Why are food prices still high?
Food prices are influenced by costs across the food system, including ingredients, farming, energy, transportation, packaging, exchange rates, labour, supplier pricing, global demand and weather. When suppliers seek cost increases, we make sure they are justified first.
Are grocers responsible for food inflation?
Food inflation reflects pressures across the entire food system, including, transportation, packaging, energy, currency, weather and global markets. Retailers are one part of the system. Our role is to operate efficiently, challenge supplier costs, invest in value and help customers save.
What is Loblaw doing to help customers save?
Because customers shop differently, we make value available in many ways, including: weekly promotions and flyers; PC Optimum points, offers and personalized savings; No Name and other control brands that provide lower-cost options across everyday categories and give us greater flexibility to create value when branded products become more expensive; discount stores; smart swaps and lower-cost alternatives; value packs; seasonal and local products when available; and more.
What about PC Optimum?
PC Optimum helps customers save, not pay more. Every year, customers earn and redeem more than $1 billion in PC Optimum points through offers and personalized savings.
How will Loblaw be more transparent?
Every month, our Inflation Reports explain things like what is driving food costs; how we're challenging supplier increases; prices we have held, lowered or promoted; where customers can find value; smart swaps and lower-cost basket ideas; PC Optimum savings opportunities; and what we are watching next. Our goal is to make affordability easier to understand and easier to act on.
The bottom line
We know Canadians are worried about the cost of food, and we take those concerns seriously. While we cannot control most costs across the food system, we can challenge supplier increases, negotiate better outcomes, invest in value, promote lower-cost choices and help customers save. That's what affordability means to us: fighting for value every day while being transparent about what we're doing.
