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More than a quarter of Canadians say profiteering by grocery chains is the top cause of high food costs, underscoring the political logic behind Prime Minister Justin Trudeau’s public demands that stores stabilize prices.
Polling by Nanos Research Group for Bloomberg News shows 28 per cent of respondents say stores increasing prices to make more profit is the biggest reason for the sharp rise in grocery bills in the past year. Increased fuel costs and profiteering by food manufacturers were two other top reasons, cited by 18 per cent and 15 per cent of respondents, respectively.
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Some seven per cent thought supply chain challenges caused by the war in Ukraine were most to blame, while four per cent each blamed weather events, the carbon tax or labour shortages. About three per cent thought the Trudeau government bore the most responsibility, while eight per cent thought it was a combination of factors.
The survey backs the idea behind the government’s efforts to improve food affordability by demanding top grocery chains — Walmart Inc., Loblaw Cos. Ltd., Metro Inc., Empire Co. and Costco Wholesale Corp. — create plans to restore price stability or face unspecified tax measures. Industry Minister Francois-Philippe Champagne announced in early October that he had received the chains’ plans and Canadians would soon see aggressive discounts for key food products along with price freezes and price-matching campaigns.
The initiative comes at a time when skyrocketing costs of food and housing have plunged Trudeau’s popularity to career lows and helped lift the fortunes of his main opponent, Conservative Leader Pierre Poilievre.
The government’s plan, however, faced criticisms that the growth of food prices is expected to slow in coming months regardless of the government’s actions. Grocery inflation slowed to 5.8 per cent in September, from 6.9 per cent in August, but still remained above the headline rate of consumer price gains.
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