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Canada’s Inflation Is “Stable” — But Your Grocery Bill Says Otherwise

Canada’s headline inflation rate may look calm on paper — but everyday Canadians know the truth the moment they step into a grocery store.
December 16, 2025 by
Canada’s Inflation Is “Stable” — But Your Grocery Bill Says Otherwise
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According to Statistics Canada, the national inflation rate held steady at 2.2% in November, yet grocery prices surged 4.7% year-over-year, marking the fastest food inflation in nearly two years. For households already stretched by higher mortgage payments, rent, and debt, the disconnect is becoming impossible to ignore.

At Lendworth, we’re seeing the real-world impact show up daily in refinance applications across Ontario.

Grocery Inflation Is Accelerating — And It’s Not Temporary

Food prices have outpaced overall inflation since August 2024, driven by factors Canadians can’t control:

  • Fresh fruit prices, especially berries, surged due to poor growing conditions

  • Processed foods rose sharply under “other food preparations”

  • Coffee prices jumped 27.8% year-over-year, driven by global weather disruptions and U.S. tariffs

  • Beef prices climbed 17.7%, as cattle inventories shrink across North America

As RBC economist Claire Fan noted, supply-side shocks and cross-border cost pressures mean food inflation could remain elevated well into 2026 — even if interest rates stay flat.

Translation: Your cost of living is rising faster than official inflation numbers suggest.

What This Means for Canadian Homeowners

Even though the Bank of Canada has paused rate cuts, household budgets are still under pressure:

  • Groceries cost more

  • Utilities and cell phone bills are rising

  • Credit card balances are growing

  • Rent inflation remains near 5% annually

For many homeowners, home equity has quietly become their strongest financial tool — especially in Ontario, where property values remain resilient despite market volatility.

Why Refinance Demand Is Rising in Ontario

At Lendworth, we’re seeing a clear trend:

More Canadians are refinancing not to spend — but to survive smartly.

Homeowners are using private refinances to:

  • ✅ Consolidate high-interest credit card and line-of-credit debt

  • ✅ Offset rising grocery and living costs

  • ✅ Stabilize cash flow while waiting for bank rates to improve

  • ✅ Access equity without income stress or perfect credit

Unlike banks, private lenders focus on the property — not paperwork.

Why Private Refinancing Makes Sense Right Now

Traditional lenders are tightening again, despite inflation pressures. Private lending fills that gap.

Lendworth Private Mortgages offer:

  • Rates starting at 8.99%

  • First and second mortgages up to 75% LTV

  • Fast approvals — often within 24–48 hours

  • Flexible income and credit requirements

  • Appraisal-based decisions using our proprietary valuation model

  • Ontario-wide coverage, with a focus on GTA, Vaughan, Toronto & York Region

  • Transparent terms with no hidden fees

We lend based on real estate fundamentals, not unrealistic underwriting boxes.

Inflation May Be “Stable” — But Your Strategy Shouldn’t Be Passive

Flat inflation doesn’t mean flat expenses. Grocery inflation alone is eroding purchasing power faster than wages are rising, and that pressure compounds month after month.

Smart homeowners are acting before financial stress turns into missed payments, forced sales, or costly renewals.

Refinance While You Still Have Options

If you own property in Ontario, your equity can work harder for you — even in a high-cost environment.

📍 Refinance. Consolidate. Stabilize.

📞 Speak with Lendworth today.

Lendworth Private Mortgages

Your equity deserves more™

👉 Apply now | Get a same-day equity review | Ontario-wide private lending