Quebecers hit hardest by inflation in Canada: Statistics Canada

Quebecers keep tightening the belt on finances as inflation rates hit province harder than the rest of Canada.

Statistics Canada’s Consumer Price Index for January 2026 showed that the province suffered the highest inflation rate in Canada, with a rate of 3 per cent, compared to a 2.3 per cent increase across Canada compared to January 2026.

The main culprit: the high price of coffee and restaurant meals.

Montrealers told CityNews they are feeling the price rise and are forced to watch their expenses.

“I check the price and before I didn’t check the price – now yes,” said another, adding the prices of all things have gone up. “At my work, just the breakfast is $3 more than before.”

“Every day when I go out, I know I’m going to spend on anything. So it’s a question but I think it’s obvious that we all struggle with that, and most of all here compared to other places I’ve been in Canada,” says one Montrealer, who adds that as a student she constantly struggled to pay for food or clothes.

While coffee and tea led the increases with a 23 per cent jump in the past year, sugar and confectionaries, store-bought wine and fresh meat, excluding poultry, saw increases of more than 10 per cent.

Economists attributed it to the federal government tax holiday between December 2024 and February 2025.

“If you actually look at prices minus the GST holiday, you can see there was a bit of a spike, because when you eliminate a tax temporarily, prices can tend to go up without people noticing,” explains Sylvain Charlebois, visiting scholar at McGill University.

“And this is now that we’re actually seeing higher prices in restaurants. So the GST holiday to me was a short-sighted policy only to score political points, but it actually made food more expensive.”

According to Statistics Canada’s data, grocery and food prices aren’t the only items responsible for Quebec’s high inflation rate.

Cell phone services, internet access and natural gas also suffered a double-digit increase. Rent in the province also rose by 9 per cent, forcing Quebecers to adjust their way of life.

One Montrealer said, “As everything is rising, wages aren’t rising, so I feel like everyone has had to adjust accordingly to get through day to day.”

Charlebois said because of overall inflation people have less disposable income to spend at the grocery store where they buy what they need rather than what they want.

“That’s why we’re not only talking about food insecurity, but we’re also talking about nutritional insecurity,” Charlebois said. “So people are just buying calories instead of desirable food products from a nutritional perspective.”

Charlebois said while prices of items like chocolate and coffee which show signs of decrease despite their high cost, he warns that geopolitical events may once again increase energy prices.

“Because of what’s going on right now with Iran, we’re certainly concerned about fuel costs,” Charlebois said. “That could actually make prices higher over the next several months, so we’re keeping a close eye on what’s happening right now.”