Canada's Competition Bureau has launched an investigation into whether the country’s grocery
sector is contributing to rising food costs nationwide.
Retail food prices in September rose at their fastest pace since 1981, with prices up 11.4% from
a year ago. That compared with an overall inflation rate of 6.9%.
And, while Canada’s inflation rate has fallen from its peak of 8.1% recorded in June of this year,
food prices continue to rise across the country.
Some grocery store analysts have suggested that consolidation within the industry has
contributed to elevated food prices.
Many grocery chains in Canada posted record profits during the pandemic and continue to post
strong earnings this year even as consumers struggle with increased costs for items ranging
from milk to meat.
The Competition Bureau said that it will examine to what extent higher grocery prices are
related to shifting competition in the sector. The federal agency will explore how the government
could combat grocery price increases by creating greater competition in the industry.
The Competition Bureau added that the grocery sector in Canada is currently concentrated
among three companies: Loblaw, Metro and Sobeys.
The agency said it will provide a set of recommendations to the federal government in a final
report that is expected to be published in June 2023.
