07:09 AM EST, 11/21/2025 (MT Newswires) -- Canadian industrial product prices for manufactured food continued to accelerate in October, which isn't a good look for broader Canadian food inflation, said Bank of Montreal (BMO).

Manufactured food prices jumped 14.2% annualized seasonally adjusted (SA) in October, which lifted the year-over-year rate to 8.2%, the fastest pace since food inflation was coming down in early 2023, noted the bank.

For reference, peak food inflation during the COVID-19 pandemic, by this measure, was in the low teens.

While industrial prices don't always pass perfectly through to the consumer level, the relationship is pretty tight in the food aisle, with about a four-to-six-month lag, stated BMO.

As a consequence, what was a good news story on the Canadian inflation front has quickly become a concern, added the bank.

Fruit/vegetables, meat and coffee really stand out as to what is driving the increase, it pointed out.