Canada’s federal government has outlined a series of measures aimed at easing food inflation pressures on households and supporting businesses across the food supply chain.
In a statement, Prime Minister Mark Carney’s office said the initiatives are intended to make “groceries and other essentials more affordable for Canadians”.
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Last week, official data was published that showed food prices in Canada rose 6.2% year on year in December, the highest rate since August 2023.
“According to the latest internationally comparable data, Canada now sits at the top of the G7 for food inflation,” Dalhousie University’s Dr. Sylvain Charlebois said last week.
The Canadian government’s initiatives, announced yesterday (26 January). include a mix of direct payments to lower-income households, support for businesses and longer-term structural reforms.
Carney added: “We are building a stronger economy that benefits everyone – creating thousands of new career opportunities with better wages.”
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By GlobalDataAt the centre of the plan is the Canada Groceries and Essentials Benefit, which builds on the existing Goods and Services Tax (GST) Credit.
Indexed to inflation, the benefit is expected to support more than 12 million Canadians from this spring, subject to Royal Assent.
It will provide C$11.7bn ($8.52bn) in additional support over six years.
In 2026, the Canadian government will also make a one-time payment equal to a 50% increase in the current GST Credit.
According to the Government, a family of four will receive up to C$1,890 this year and about C$1,400 annually for the next four years.
Meanwhile, a single person will receive up to C$950 this year and about C$700 annually for the next four years. The benefit will be paid quarterly at the start of each quarter.
On the business side, Ottawa will allocate C$500m from the Strategic Response Fund to help companies manage supply chain disruptions and related costs “without passing those costs on to Canadians at the checkout line”.
A new C$150m Food Security Fund will be set up under the Regional Tariff Response Initiative to support small-and medium-sized enterprises and the organisations that work with them.
To spur investment and expand domestic production, the Canadian government will introduce immediate expensing for greenhouse buildings.
Producers will be able to fully write off greenhouses acquired on or after 4 November 2025 that become available for use before 2030.
The measure is intended to increase domestic food supply and investment in production over the medium term.
The government is also developing a National Food Security Strategy focused on strengthening domestic food production and improving access to affordable, nutritious food.
Planned measures include implementing unit price labelling and supporting the Competition Bureau’s work in “monitoring and enforcing competition in the market, including food supply chains”.
Heath MacDonald, Canada’s Minister of Agriculture and Agri-Food, said: “These measures will support Canada’s agriculture sector and strengthen the systems Canadians rely on every day. By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system.”
