Industry Minister François-Philippe Champagne says he will be announcing the initial commitments he's secured from grocers to stabilize prices later today. Produce is shown at a west-end Toronto Sobeys grocery store, on Sunday, June 26, 2023. THE CANADIAN PRESS/Graeme Roy
Industry Minister François-Philippe Champagne has revealed that major grocers in Canada will implement measures such as discounts, price freezes, and price-matching campaigns to stabilize grocery prices. While the minister did not provide specific details about which products would be subject to these promotions, he emphasized that Canadians would soon witness the rollout of actions aimed at addressing rising grocery prices. Champagne mentioned that different grocery chains would have distinct actions, leaving it to Canadians to assess the effectiveness of these initiatives.
The move comes after the Liberal government called on major grocers to present a plan to stabilize prices by Thanksgiving or face potential tax measures. Rising grocery prices have been a significant concern for Canadians, particularly impacting lower-income families. Although grocery price inflation slowed to 6.9% in August, it continues to outpace the overall inflation rate, which stood at 4% last month.
Champagne highlighted the government's readiness to take action if grocers fail to implement sufficient measures. As part of the government's response, the Office of Consumer Affairs will establish a "grocery task force" to monitor the implementation of grocers' plans. While recognizing the need for immediate actions, Champagne also emphasized the importance of promoting competition in the sector for a long-term solution.
The minister mentioned the possibility of encouraging international companies to enter the Canadian market, creating more competition that would benefit consumers. The Liberal government recently introduced legislation to make changes to the country's competition law, aiming to address anti-competitive behavior and strengthen scrutiny of mergers. However, a comprehensive overhaul of the Competition Act has been promised, with no specified timeline for its implementation.
Former Competition Bureau commissioner Melanie Aitken criticized the government's approach, particularly its failure to address issues like the supply management system. Aitken expressed discontent with the state-sponsored cartel's impact on food prices and suggested a more comprehensive examination of the challenges in the grocery industry.
In addition to the grocery pricing measures, other updates were provided during the news conference. Finance Minister Chrystia Freeland announced public consultations on lowering the criminal rate of interest to address predatory lending, as outlined in the spring budget. Treasury Board President Anita Anand introduced a new managers' guide for public servants, offering guidance on when to contract professional services and when to use internal resources.
Grocers to give discounts, price freezes: minister
