What could cost you more in 2025

The purchasing power of Quebecers is not at its peak. A sign: the Canadian dollar has traded below US$0.70 at the end of 2024.

The loonie’s fall comes as the US dollar has been on the rise since the re-election of former President Donald Trump. Experts agree that the Canadian economy has not shown the same strength as that of its southern neighbor in recent months.

On the other hand, inflation continues to fall, as the Bank of Canada had anticipated after five consecutive cuts in the key rate.

Price growth is slow. But before you untie your purse strings, here are some price increases to expect.

Grocery cart

The cost of a grocery basket has risen sharply over the past three years. This increase will continue in the coming year, with a total increase in food prices varying between 3% and 5%.

The bill for a family of four is expected to jump by $800 after a year, predicts the 2025 Food Prices Report.

“Many basic goods are cheaper than last year, with the exception of coffee, cocoa and beef.”

— Quote from the Food Prices Report 2025

The price of beef is likely what most consumers will notice, says the analysis prepared by four Canadian universities.

After climbing 9.2% from September 2023 to September 2024, beef will cost 4% to 6% more for the next year.

Droughts, the increase in the cost of animal feed and the notable reduction in herds have particularly contributed to the record high prices.

Wines and spirits

As of February 2, 2025, the Société des alcools du Québec (SAQ) will adjust the price of bottles sold in stores upwards.

In fact, the state-owned company wanted to increase its increase to better reflect changes in costs and the financial context. The markup represents the profit margin that the SAQ applies to the products sold.

For a $15 wine, this margin will increase by 0.3%, which represents an increase of approximately $0.05 in the bill. A $45 spirit will see its retail price increase by plus or minus $1.50.

It’s good to know that bottles of wine under $12 will be spared.

This is a second increase in less than a year. The SAQ has announced that it will now carry out an annual review of its increase.

Accommodation

The rental market remains tight in several large urban centers across the country, observes the Canada Mortgage and Housing Corporation (CMHC).

This is the case for the Quebec region. As less than 1% of apartments remained vacant in 2024, upward pressure on rents continued, observed CMHC.

In Lévis as in Quebec, the average rent for two-bedroom apartments has now exceeded the $1,000 mark.

It remains to be seen what the recommendations of the Administrative Housing Tribunal (TAL) will be, which have not yet been published for 2025.

What about property prices? According to Royal LePage forecasts, the median price of a single-family home and a condominium in the province is expected to increase by 8% and 6% respectively to reach $622,700 and $447,500.

Note: the Quebec region should record the strongest growth in real estate prices in the country, with an expected increase of 11%.

With interest rates falling, more buyers are competing for the same volume of available properties, the real estate agency said to explain this significant jump.

Taxes municipales

What will your municipal tax bill look like? For owners living in Quebec City, expect an average increase of 2.9%.

Lévis residents will be able to catch their breath. After absorbing a record increase of 7.7% in 2024, they will see the amount of municipal taxes increase by an average of 2.9%.

Around the vehicle

For a fourth consecutive year, motorists will have their driving license at a reduced price. Quebec renews its insurance contribution payment holiday for 2025.

On their birthday, a driver without demerit points will have to pay $26.25. Much less than the $118.41 it would otherwise cost.

On the other hand, registering a vehicle will be more expensive for residents of Quebec. An amount of $60 will be collected for each registered vehicle to finance the Réseau de transport de la Capitale (RTC).

This amount is added to the $30 contribution already collected by the Société de l’assurance automobile du Québec (SAAQ) since 1992.

Electricity bill

Your electricity bill will not jump more than 3%. This is what the Quebec government promised by passing a law capping the increase in rates for Hydro-Québec, but also for certain government services, until 2026.

The objective: to help citizens cope with the rising cost of living.

This ceiling affects in particular the contribution to daycare services, university tuition fees and access to national parks.

Traveling to a hotel

There is no doubt that the bill for a hotel room is expected to continue to rise in 2025, but at a slower rate.

The opening of new establishments around the world as well as an easing of inflationary pressures explain these forecasts from the travel management company American Express Global Business Travel (Amex GBP).

The latter forecasts average hotel rates in 80 major cities. In North America, New York will experience the largest increase (+4.7%) of the destinations studied.

In Canada, the jump varies between 2.9% and 3.2%, whether for Montreal, Calgary or Vancouver.

Cheaper Internet?

The Canadian Radio-television and Telecommunications Commission (CRTC) has announced that it will give more people access to fiber optic networks in Ontario and Quebec. Where competition has declined the most in recent years.

As of February 13, this new access will make it possible to increase the number of affordable high-speed Internet service providers, the public body anticipates. In the process, companies will have to redouble their efforts to attract customers with competitive offers.

It remains to be seen whether this measure will have the expected results.

With information from The Canadian Press