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Loblaws says groceries are about to get more expensive in Canada again

Isabelle Docto

created: April 22, 2025, 3:37 p.m. | updated: April 23, 2025, 12:41 p.m.

<img class="webfeedsFeaturedVisual" src="https://display.blogto.com/articles/20250422-grocery-prices-canada-0.jpg?w=1200&amp;cmd=resize_then_crop&amp;height=630&amp;quality=70&amp;format=jpeg" width="100%" /><p>Shoppers can expect to see grocery prices continue to rise in Canada amid U.S. President<a href="https://www.blogto.com/city/2025/03/canada-and-us-officially-trade-war-tariffs-take-effect/"> Donald Trump's tariffs</a>, according to a new report by Loblaw Companies Limited.</p><p>The retailer, which owns major grocery chains like Loblaws, No Frills&nbsp;and Real Canadian Superstore, released its April food inflation report on Monday, following Statistics Canada's&nbsp;latest Consumer Price Index release last week.</p><p>StatsCan&nbsp;<a href="https://www150.statcan.gc.ca/n1/daily-quotidien/250415/dq250415a-eng.htm?HPA=1" rel="noopener" target="_blank">reported</a>&nbsp;that the country's&nbsp;inflation rate rose to 2.3 per cent in March, with food inflation spiking to 3.2 per cent.</p><p>Loblaw says the 25 per cent tariffs slapped on Canada continue to challenge key sectors and lower consumer confidence.</p><p>When the trade war between Canada and the U.S. began in March, <a href="https://www.blogto.com/eat_drink/2025/03/grocery-prices-canada-tariffs/">the grocery giant told us</a>&nbsp;that shoppers would not see an immediate impact on food prices.</p><p>"We expect a wide range of timing depending on the type of product, the current level of inventory, and the ability to find alternatives,"&nbsp;said a Loblaw spokesperson.</p><p>Over a month into the tariff spat with no clear end in sight, the company says this is about to change.</p><p>"While the impact of Canada&rsquo;s counter tariffs was minimal on food prices in March, as retailers sell through existing inventories, higher prices will begin appearing on shelves,"&nbsp;reads the&nbsp;<a href="https://mma.prnewswire.com/media/2667790/Loblaw_Companies_Limited___Public_Relations_Loblaw_April_Food_In.pdf?p=pdf" rel="noopener" target="_blank">report</a>.</p><p>Matt Poirier, Retail Council of Canada vice president of government relations,<a href="https://dailyhive.com/canada/canada-tariffs-job-bills-affected" rel="noopener" target="_blank">&nbsp;said January</a>&nbsp;that retailers would hold out for as long as possible, using tactics such as stockpiling and buying in advance, lessons they learned during the pandemic.</p><p>"They can roll out all these great strategies and tactics. But at the end of the day, it still won&rsquo;t be enough, unfortunately. So, that turns into massive price increases or shortages of certain goods," he explained.</p><p>The food inflation report also addressed tariffs that Trump threatened to impose on the rest of the world.</p><p>"While currently on pause, the tariffs the U.S. has threatened to impose on dozens of countries could indirectly impact food prices here in Canada,"&nbsp;it reads.</p><p>It gave the example of coffee, which is already facing higher-than-usual prices due to a poor growing season.</p><p>The report explains that much coffee is typically roasted and packaged in the U.S. Since many U.S. coffee producers import their beans from Vietnam, they could be subject to 46 per cent tariffs. The finished product sent to Canada would then incur an additional 25 per cent tariff.</p><p>"As a result, every $1 spent on coffee previously could conceptually cost as much as $1.82 after tariffs,"&nbsp;explained the report.</p><h5>What gets pricier?</h5><p>Loblaw listed grocery items that have been increasing in price during the trade war.</p><p>While egg prices have been a hot-button issue in the U.S. due to the bird flu, prices have been more stable in Canada, where the virus has not taken hold.</p><p>"However, Canada is a net importer of liquid eggs from the U.S., and that cost has increased substantially," explained Loblaw.</p><p>"Aside from liquid eggs in the egg aisle, the biggest impact will be seen in baked goods, like muffins, cakes and cookies."</p><p>Pork, chicken, and beef prices have also been rising, according to the report.</p><p>"Chicken remains high after ongoing supply challenges and the beef herd is the smallest since the 1970s due to drought conditions and rising feed prices,"&nbsp;it reads.</p><p><img alt="grocery prices caada" id="content-image-116437" src="https://display.blogto.com/uploads/2025/04/22/1745336231-20250422-grocery-prices-canada-1.jpg?w=1400&amp;cmd=resize&amp;quality=70&amp;format=jpeg" style="width: 1400px; height: 831px;" /></p><p class="caption">Loblaw</p><p>If you'<span style="font-family: Georgia; font-size: 20px; font-weight: 300;">re a fan of nuts, Loblaw says those prices have been climbing due to increased global demand, changes in consumer preferences and the impact of poor weather in major nut-producing regions.</span></p><p>&nbsp;</p><p>"Almonds, cashews, walnuts, pecans, Brazil nuts collectively have a weighted average year-over-year increase of 32.7 per cent,"&nbsp;reads the report.</p><h5>Tariffs' impact on "made-in-Canada"&nbsp;items</h5><p>The April food inflation report also addressed&nbsp;<a href="https://www.blogto.com/eat_drink/2025/02/grocery-stores-labelling-us-products-made-canada/" rel="noopener" target="_blank">customers' confusion</a>&nbsp;over <a href="https://www.blogto.com/city/2025/03/difference-between-made-canada-and-product-canada-labels/">"made-in-Canada" labels.</a></p><p>"For a product to claim 'Made in Canada,' it means that the last substantial transformation or processing of the product occurred in Canada," it reads. "This can include assembling or processing ingredients into a finished product, even if some of the ingredients were imported."</p><p>Loblaw provided the example of a granola bar manufactured in Canada, which contains chocolate chips and peanuts imported from the U.S.</p><p>"Both of those ingredients are currently subject to a 25 per cent tariff, partially impacting the price of the final product,"&nbsp;explained the report.</p><p>Loblaw and grocers like Sobeys and Walmart have&nbsp;<a href="https://www.blogto.com/eat_drink/2025/02/grocery-stores-labelling-us-products-made-canada/" rel="noopener" target="_blank">faced criticism</a>&nbsp;from Canadians, who accuse them of mislabeling&nbsp;U.S. products as Canadian-made.</p>

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