Recent grocery flyers have the Trudeau government saying that its plan to “stabilize prices” is already bearing fruit on the eve of the Thanksgiving holiday, a promise that the Conservative leader has spent the week ridiculing.
“Canadians will be able to see discounts, price freezes, competitive pricing programs,” said the Minister of Innovation, Science and Industry, François-Philippe Champagne, during a press briefing. THURSDAY.
He added to journalists that his reading of the circulars that morning made him recognize measures promised in the plans submitted to him by grocers, but which he cannot disclose. He sees it as an “acceleration” of different strategies to attract consumers, which he attributes to the actions of his government.
“The cry from the heart that I made on behalf of Canadians has been heard,” he said, when announcing that the Federal Office of Consumer Affairs will monitor the evolution of price reductions with major food chains.
His government promises, among other things, to increase competition between grocery stores, to fight against the reduction of formats (reduflation) and quality (dequaliflation), or to collect better statistics on the prices of different foods.
Success of a meeting?
On the very first day of the parliamentary term, in September, François-Philippe Champagne met with the big bosses of the country’s five largest grocery chains to ask them for a plan to put an end to increases in food prices.
The Prime Minister had given him the mandate to extract from them a plan to “stabilize prices” between now and Thanksgiving, next Monday, October 9. “Our largest grocery store chains are making record profits while Canadians are struggling to put food on the table,” said Justin Trudeau when entrusting him with this mission.
The leader of the official opposition, Pierre Poilievre, rose in the House on numerous occasions this week to ask if this commitment still held water.
“I know it was a ridiculous promise. I hate having to hold it against him for something so absurd after he caused such a rapid rise in prices, but it was his promise,” the Conservative leader mocked Wednesday. He had earlier mentioned that the price of a turkey had reached $120 at the grocery store.
Mr. Poilievre offered further figures during question period on Thursday, citing flyers to claim that turkeys had gone from $1.49 a pound to $2.49 since Justin’s Liberals came to power. Trudeau.
“The last time he gave advice to Canadians was to buy crypto [monnaie]. And then he suggests buying a turkey for $120. I found one for $30,” replied Minister Champagne, provoking a chaotic hubbub from the opposing benches.
The price of turkey has increased by 18% this year compared to October 2022, according to calculations by the Agri-Food Analysis Laboratory at Dalhousie University. Statistics Canada publishes data on the price of chicken and poultry, but not specifically on the price of turkey.
Inflation is falling anyway
The September 18 meeting with grocers in Ottawa was described as “productive” but was quickly overshadowed by the announcement the same day that the Government of India is suspected of a murder in Canada. Minister Champagne continued his quest by asking large manufacturers like Nestlé, Unilever, Kraft and Heinz to stop raising their prices.
Ottawa is still threatening grocers to impose new taxes if the plans presented are not to its satisfaction. This is a long-standing demand from the New Democratic Party (NDP) which demands to “force” the major chains to lower their prices.
“The worst thing would be to see Ottawa tax profits, tax grocers’ profits more, because in the end, it is the Conservative who will pay,” believes Sylvain Charlebois, economist and professor at Dalhousie University.
The food sector expert was present at the convening of grocers, at the invitation of Minister Champagne, and where the Minister of Finance, Chrystia Freeland, also made a brief appearance. According to his analysis, supermarkets do not make most of their money on food, where the profit margin is slim. Inflation, he says, is declining anyway.
“No matter what happens with Ottawa, the situation will improve for consumers. [Mais] It is certain that if we expect price drops, we dream in color. »
The federal government expects each grocery chain to present its own strategy to limit price increases. It will be up to consumers to judge which plan is best.
In the House, the Liberals are complaining about what they describe as “obstruction” by the Conservatives to delay Bill C-56, called the “Affordable Housing and Grocery Act”, which plans to eliminate the GST for the construction of apartments and to toughen the competition law to block company mergers.