As the new year unfolds, Canadians can expect to pay more for a range of goods and services in 2025. From grocery bills to travel fees, price hikes are set to impact households across the country, challenging those hoping for a more affordable year. Here’s a look at where costs are rising in 2025 and what Canadians should prepare for.
Groceries to Cost More in 2025
Food prices are expected to rise significantly in the coming year. According to Canada’s Food Price Report 2025, food prices will increase by 3% to 5%, with the average family of four spending an additional $801.56—bringing their total food expenditure to $16,833.67. This price jump is influenced by several global factors, including climate change, geopolitical instability, and inflation. Categories most affected will include bakery items, dairy, meat, restaurants, and vegetables, all seeing price increases of 4% to 6%.
Rising Costs for Telecommunications Services
Bell Canada has confirmed that some of its TV, internet, and home phone plans will see price hikes starting February 1, 2025. The telecom company attributed the increases to rising operational costs and a shifting market. Affected customers will receive 60 days’ notice about the changes, with some regional variations in pricing.
Air Canada Introduces Additional Baggage Fees
Air Canada passengers traveling within North America, Central America, or the Caribbean will notice an additional baggage fee starting January 2025. Those booking basic economy fares will be required to pay for carry-on luggage, with prices set at $35 for the first bag and $50 for the second. This change applies to bookings made after January 3, 2025. Additionally, a fee for changing seat assignments will also be introduced in late January.
New Travel Fees and Taxes
Canadians traveling to the UK will need to budget for the new Electronic Travel Authorisation (ETA), which comes into effect in January 2025. At a cost of C$18.02 per person, the ETA is required for all travellers headed to or transiting through the UK.
Additionally, Canadians planning cruises to Mexico will face a new US$42 (C$59.53) immigration fee, set to take effect on July 1, 2025, following initial delays. This fee is intended to support the Mexican military, according to reports.
Subscription Services See Price Hikes
Several subscription services have already increased their prices or will do so in 2025. Costco raised its membership fees in both the US and Canada in September 2024, with the Gold Star membership now costing $65 annually and the Executive Membership rising to $130.
Spotify, which raised its Premium and Family plan prices in December, will now charge $20.99 per month for its Family plan and $12.69 for an individual Premium subscription. Disney+ also announced price hikes, with the Standard plan jumping to $12.99 per month and the Premium plan to $15.99.
Nexus Program Fees More Than Double
Travellers using the Nexus program, which facilitates expedited border crossings between the US and Canada, will see a significant increase in application fees. Effective October 1, 2024, the fee more than doubled from US$50 (C$67.59) to US$120 (C$162.22).
A Year of Increased Living Costs
These price hikes reflect broader inflationary pressures that Canadians will face in 2025. Whether at the grocery store, with their internet plans, or during their travels, many will feel the strain as costs continue to rise across various sectors.
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