Food inflation expected to jump in January amid tax changes: Economists

The Canadian Press: Starting mid-December 2024, the Liberal government waived the federal portion of the sales tax on dining out and a variety of common household goods and some grocery items for two months.

With January 2025 marking the only full calendar month benefiting from the tax change, January 2026 will see higher prices in comparison for restaurant meals and some grocery items, Janzen explained.

“Food price growth could spike above (seven per cent), driven by rising restaurant costs compared to tax-exempt levels a year ago,” he said in the note…