Prime Minister Carney Unveils Measures to Cut Canadian Grocery Costs
The Canadian government, under Prime Minister Mark Carney, has announced new measures aimed at cutting grocery costs and enhancing the affordability of essential goods. This initiative is part of a broader plan to support Canadians amid rising economic challenges.
New Measures to Cut Grocery Costs
The government has introduced the Canada Groceries and Essentials Benefit, previously known as the GST Credit. This initiative will increase the benefit by 25% over the next five years, beginning in July 2026.
- A family of four can expect to receive up to $1,890 this year.
- Single individuals may receive up to $950 in the same period.
- Beyond this year, families will get approximately $1,400 annually, while singles will receive about $700 each year for the next four years.
Addressing Food Insecurity
To tackle food insecurity, the government is providing substantial funding to support local food systems and production.
- Establishing a $500 million allocation from the Strategic Response Fund to help businesses manage supply chain issues.
- Creating a $150 million Food Security Fund aimed at supporting small to medium enterprises.
- Investing $20 million in the Local Food Infrastructure Fund to enhance food banks’ capabilities in delivering nutritious food.
Strengthening Domestic Food Production
To boost food production, the government is introducing immediate expensing for greenhouse facilities. This initiative allows producers to write off buildings acquired after November 4, 2025, that will be operational by 2030.
Additionally, there will be a development of a National Food Security Strategy focusing on improving access to affordable food and supporting local production. This strategy will also promote unit price labeling and enhanced monitoring by the Competition Bureau.
On the Horizon: Budget 2025 and Further Measures
These grocery cost-cutting measures align with other actions aimed at enhancing affordability in Canada. Key points include:
- Tax cuts for 22 million Canadians by lowering the first marginal personal income tax rate from 15% to 14% starting July 1, 2025.
- Elimination of the GST for first-time homebuyers on new homes valued up to $1 million.
- Cancellation of the federal consumer carbon tax effective April 1, 2025, expected to save Canadians significantly at the pumps.
- Introducing a permanent National School Food Program to provide meals for about 400,000 children annually.
These comprehensive measures demonstrate the government’s commitment to reduce financial burdens on families and restore competition within the food supply chain. Enhanced support aims to foster a resilient economy that empowers Canadians while ensuring fair pricing at grocery stores.
