The process to stabilize food prices in Canada isn’t as simple as flicking a switch, warned Industry Minister François-Philippe Champagne. He advised that the process will span weeks or even months before tangible results appear. Earlier this week, Champagne announced an agreement with major grocers, indicating progress in his endeavor to achieve steadier, more affordable prices.
Champagne and the federal government have been relentless in their quest to address skyrocketing grocery costs. The minister had given the CEOs of Canada’s five largest grocery chains a deadline to formulate a plan to stabilize prices by Thanksgiving.
He reassured that Canadians will soon start to observe grocers implementing measures to address prices. These will encompass price freezes, matching competitors’ prices, and discounts on select items. However, Champagne remained reticent concerning how shoppers can gauge the success of these initiatives.
The minister stressed that the laborious task of reducing prices would certainly extend for months. As Champagne explained, “It’s not like a switch you flip and you say, ‘oh, it’s Thanksgiving, and suddenly everything is solved.’ I’ll be on their back for months.”
Interestingly, the Thanksgiving deadline was aimed at prompting grocers to propose a feasible plan, rather than to mark the accomplishment of price stability.
In comparison to last year, food inflation hit a blistering 11.4%. This represented the highest year-over-year growth rate in above four decades. Now, although the growth rate has reduced to 6.9% as of August, it remains stubbornly above the headline inflation, which was 4% for the same period.
Alongside, the Liberal Party is advancing its plans to modify Canada’s Competition Act via Bill C-56, the Affordable Housing and Groceries Act, to bolster protections for Canadians. The act focuses on enhancing competition within the national grocery sector.
There are also motions to institute a grocery “code of conduct,” aimed at promoting fairness and transparency in the sector.
However, when questioned about the federal government’s perceived sluggishness in implementing these measures, considering the duration that food prices have reached an all-time high, Champagne retorted that it’s “not about credit.”
“The aim is to prompt a difference and persistently push for it. If prices go down, it’s a win for all,” he added.
Denying any political motivation for these actions, with Liberals’ popularity waning in recent polls, Champagne affirmed that the triggering factor for action is responding to grievances he hears, not mere numbers. He added, “We’re acting, but look at other countries, this is an ongoing process, and no one is suggesting that we’re done.”
