Bank of Canada's Macklem says he expects food inflation to ease in 2026

Bank of Canada governor Tiff Macklem says he expects food inflation to ease in the coming months after Statistics Canada reported grocery prices jumped higher in November.

The agency said Monday that the annual rise in the cost of food bought from grocery stores hit a nearly two-year high of 4.7 per cent last month thanks largely to rising prices for berries, beef and coffee.

READ: Inflation steady at 2.2% in November despite grocery price hike

Speaking to media after giving a speech in Montreal today, Macklem said U.S. tariffs on coffee-producing countries have affected Canada because those beans are often imported into the United States and refined before being sent to grocers and cafés north of the border.

He said he expects those pressures to unwind over the coming months but he also warns that high beef prices tied to farmers keeping smaller herds will take longer to settle.

StatCan said the overall inflation rate held steady in November at 2.2 per cent as rising grocery and gas prices were offset by cheaper travel costs.

Macklem acknowledged that cooling food inflation in the new year would be "cold comfort" for Canadians struggling to afford groceries because not every aisle will see relief and prices themselves likely won't decline.

READ: Bank of Canada leaves key interest rate unchanged at 2.25%

"If you're a family that's already having difficulty putting food on the table, the fact that food price inflation might come down, that's not the same thing as food prices coming down," he said.