Grocery chain owners meet to 'take pressure off' Ottawa, not deal with food inflation

At the conclusion of a three-day conference of the Liberal Party in London, Ontario, Canada's Prime Minister, Justin Trudeau, announced that the heads of grocery store chains have been invited to Ottawa to share their plans and viewpoints with the federal government regarding the "stabilization" and reduction of "food prices" in Canada.

Trudeau also warned that if prices in grocery stores increase improperly, other financial measures would be considered. He emphasized that in Canada, grocery store chains make significant profits while people struggle with food security and rely on food banks. The managers of Loblaws and Walmart Canada have responded to this invitation.

On average, representatives from companies like Sobey's and Costco have not yet responded to this request. These invitations come amid rising food prices in grocery stores, even though overall inflation is decreasing in the public eye. The latest Canadian Consumer Price Index shows that inflation increased to 3.3 percent in July compared to the same month last year, while food prices in grocery stores increased by 8.5 percent in July.

However, this increase is relatively lower compared to the annual increases of 9.1 percent in June and over 11 percent in the previous fall.

Sylvain Charlebois, director of the Dalhousie University Agri-Food Analytics Lab, will also be present at these meetings and is considered an impartial observer. He noted that the attention of Industry Minister François-Philippe Champagne to food inflation should not be seen as unexpected because the cost of living is currently the "primary concern" of Canadians.

The Liberals have made joint efforts to address affordability issues, including announcing a "grocery purchase coupon" in the federal budget for 2023. However, conservatives have gained an edge over the Liberals in polls, and affordability issues have become a top priority for voters.

In July, when conservatives surpassed liberals in polls for the first time, Darrell Bricker, CEO of Global News, stated that this issue reflects not a societal consensus but rather "fatigue" with the Trudeau government.

Michael von Massow, a food economist at the University of Guelph, told Global News that his reaction to the meeting with grocery store owners is a "critical" perspective that this proposal is "disheartening" and "misguided" to suggest that a single decision can lower food prices. They point out that multiple factors, including global factors like climate change and adverse events such as the war in Ukraine and its impact on the food supply chain, affect food prices.

Furthermore, a public announcement of financial measures may have different outcomes. If food inflation decreases as predicted, the Liberals may claim success in pressuring grocery store owners to lower prices. However, if price pressures persist, financial measures and other actions may be implemented to protect consumers.

The measures resulting from the meeting with grocery store owners may gradually lead to a reduction in food inflation. However, global and local factors still play a significant role in inflation. This is important for consumers because rising food prices can directly impact their ability to access food and make daily purchases.

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