Loblaw Warns of Grocery Price Hikes as Tariffs Stack Pressure on Canadian Consumers

Loblaw Companies Ltd. has released its April food inflation report, highlighting rising costs for several staple grocery items across Canada and warning that “stacking tariffs” could drive prices even higher in the months ahead. While olive oil prices have seen a welcome drop, the broader outlook for household food budgets is far less encouraging.

According to the report, key products such as chicken breasts, pork trim, beef, eggs, and coffee have all become more expensive compared to the same time last year. Chicken breasts are up 25 per cent, pork trim has surged by 36.5 per cent, and beef prices have risen 17.3 per cent in the past quarter alone. Meanwhile, a combination of drought conditions, rising feed costs, and supply disruptions continues to tighten availability.

Coffee drinkers are also feeling the pinch. Arabica beans are now 65 per cent more expensive than they were a year ago, while robusta has climbed 33.7 per cent. Tariffs on coffee-producing nations and import duties on U.S. goods entering Canada have created what Loblaw calls a “volatile” pricing environment, with the cost of a cup of coffee potentially rising by 82 per cent when all tariffs are considered.

U.S. eggs, a major component in Canadian baking, remain one of the most affected items, still up 65.3 per cent year over year, despite a 19 per cent decline in the last quarter. “Canada is a net importer of liquid eggs from the U.S.,” the report states, warning that baked goods like muffins and cookies could be hit hardest.

The report mentions the word “tariff” a dozen times and details how layered trade policies between Canada, the U.S., and other countries are beginning to disrupt food supply chains. While Canadian counter-tariffs had a minimal impact on food prices in March, Loblaw cautions that consumers will soon see higher shelf prices as retailers deplete existing inventories.

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The one bright spot is olive oil. After record highs last year caused by droughts in Europe, global supply has improved thanks to better harvests in Spain, Greece, and Tunisia. As a result, olive oil prices are down nearly 47 per cent from last year and fell an additional 3.2 per cent in the last quarter.

Still, for most products, the cost outlook is grim. As global trade tensions intensify and inflation persists, Loblaw’s report underscores the mounting pressures facing Canadian households at the checkout counter.