Food prices are reshaping Canadian grocery shopping.

Canadian grocery prices were more than 7% higher year‑over‑year in January, and shoppers are shifting toward discount retailers, private‑label items and surplus/liquidation stores.

Food prices remain a central concern for Canadian shoppers as overall price growth eases. Grocery prices were more than 7 per cent higher year‑over‑year in January and Canada has the highest food inflation rate in the G7. Despite weaker consumer sentiment, spending has not stopped; shoppers are shifting toward lower‑priced retailers, private‑label brands and surplus outlets. Major grocers are responding by expanding discount banners and forming food‑rescue partnerships. Key facts: - Grocery prices were over 7% higher in January year‑over‑year; beef rose 18.8% and coffee rose 29.8% from the year before. - The article notes Canada has the highest rate of food inflation among G7 countries. - Shoppers are buying more private‑label items and favouring discount banners; Loblaw's No Frills, Maxi and Real Canadian Superstore outperformed its traditional supermarkets last quarter. - Loblaw announced plans to spend $2.4 billion this year to renovate 191 stores and open 70 new locations, and grocery providers are partnering with Flashfood, Too Good To Go and FoodHero to move surplus food. - Independent liquidation‑style surplus stores are expanding across the country and project additional openings this year, with owners reporting a broader customer base. - Wages and disposable income are steady and the unemployment rate has been shrinking, which analysts say supports continued consumer spending. Summary: Higher food costs are changing how and where Canadians shop, supporting discount formats and surplus/liquidation outlets. Major grocers are adapting through store investments and food‑rescue partnerships. Undetermined at this time.