In a bid to contain rising frustration with the cost of living, Justin Trudeau’s office presented its first steps in stabilizing food prices as part of an effort pacify Canadians despite declining support for the Liberal Party.
Industry Ministers’ Assurance
The awaited details were revealed on October 5 by Industry Minister François-Philippe Champagne and Finance Minister Chrystia Freeland after weeks of dialogues between them and executives from major grocery chains and food companies.
According to Wine, large retailers such as Loblaw Cos. Ltd., Walmart Inc., Empire Co. Ltd., Metro Inc., and Costco Wholesale Corp, have committed themselves to initiatives that will bring back price stability on shop shelves. Nevertheless, Canadian grocers’ stocks scarcely reacted immediately following this announcement.
Consumer Relief
Champagne ensures that Canadians should anticipate tough discounts on a variety of essential food products; this is in addition to frozen prices and matching campaigns.
“We’re going to hold their feet to the fire,” he said as he outlined government commitment aimed at ensuring compliance by grocery store chains.
Following these measures intended to ease hardships faced by citizens, Trudeau recently promised that he would pressure top executives in supermarkets so they can bring back price stability among other interventions. Steeply rising costs of food and housing has caused several declines in prime minister’s approval ratings based on different polls.
Trudeau’s Blame Game: Targeting Grocers Amidst Public Outcry
For causing hunger among common people while attaining “record profits,” Trudeau castigated food outlets thereby increasing reliance on charitable hands for feeding Canadians
Even though grocery inflation slowed down from 8.5 percent posted in July 2021 to 6.9 percent in August 2021, it is still outpacing headline inflation which is currently around four percent.
Threats of Further Action
The government has warned grocers and food producers that, if there is no tangible progress, such as taxes on grocery retailers, more measures will be introduced by the state ministers on the 5th of October.
Freeland emphasized that “no measures are off the table” when desired results are not achieved.
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Strengthening Consumer Protections
To further consumer advocacy, a specific task force for groceries will be established under the Office of Consumer Affairs’s roof. This squad will oversee trade practices in retail business and delve into issues like “shrinkflation” which refers to cases where products become smaller yet their prices stay as they were.
Similarly, regarding transparency and accountability within Canada’s agri-food supply chain, Champagne noted that initiatives such as Grocery Code of Conduct and a Food Price Hub are underway.
In addition to growing public dissatisfaction with economic uncertainty Trudeau’s government is under pressure to provide meaningful relief measures as Canadians face the stark realities of cost-of-living crisis.
Last Updated on by Alshaar Ansari
