Canada’s Prime Minister Mark Carney has announced a wide-ranging set of measures designed to bring down food and grocery costs, offering relief to low- and modest-income families who are struggling with the rising cost of living.
Speaking at a press conference on Wednesday, Carney acknowledged that food prices have surged faster than overall inflation, driven by a mix of global challenges. He pointed to supply chain disruptions caused by international tariffs, extreme weather linked to climate change, and ongoing geopolitical tensions as key reasons behind the sharp rise in grocery bills.
To help households manage these pressures, the government will expand the Goods and Services Tax (GST) credit on food products. Under the new plan, the GST credit amount will increase by 25 percent for a period of five years. According to Carney, this move alone will put hundreds of additional dollars into the bank accounts of more than 12 million Canadians.
Affordability, particularly when it comes to groceries, has become one of the most pressing concerns across the country. While overall inflation has shown signs of easing, food prices have continued to climb. Consumers have repeatedly voiced frustration, but retailers and traders say they are still passing on higher costs linked to poor harvests in major growing regions and tariffs introduced during U.S. President Donald Trump’s administration.
In addition to the expanded GST credit, the government will issue a one-time payment this year equal to 50 percent of the GST rebate, offering immediate relief to families feeling the squeeze.
The full package of measures is expected to cost C$3.1 billion in the first year, followed by annual costs ranging between C$1.3 billion and C$1.8 billion over the next four years. Beyond direct consumer support, the government is also investing in the broader food system. This includes C$500 million for capital investment in the food sector, C$150 million earmarked for small and medium-sized enterprises, and additional funding for food banks and community-based food programs.
At a time when many families are forced to make tough choices at the checkout counter, these measures aim to provide not just financial relief, but also reassurance that everyday struggles are being heard at the highest levels of government. For millions of Canadians, a little extra help with food costs could mean fewer compromises and a greater sense of stability in uncertain times.
