Competition Bureau to probe grocery sector as food prices soar

With the price of food the best it’s been in additional than 4 many years, Canada’s competitors watchdog is launching a examine to take a more in-depth take a look at the grocery trade on this nation.

“The examine will study numerous points with the aim of recommending measures that governments can take to assist enhance competitors within the sector,” the Competition Bureau stated in a launch on Monday.

The watchdog stated it is going to make suggestions for the federal authorities in its closing report, which it plans to publish in June 2023.

Final week, Statistics Canada launched its newest inflation report that confirmed whereas total inflation cooler barely in September, the price of groceries continues to climb.

Grocery prices rose on the quickest charge since August 1981, with prices up 11.4 per cent in contrast with a 12 months in the past. Prices for bakery merchandise had been up nearly 15 per cent, whereas the fee for contemporary vegetables and fruit rose by practically 12 per cent.

The Competition Bureau stated many elements could have impacted food prices together with increased enter prices, disruptions to the provision chain, the continued invasion by Russia in Ukraine, and excessive climate. Nonetheless, on this examine, it will likely be particularly whether or not competitors within the grocery sector can be enjoying a task.

The examine will study three important points associated to competitors, in accordance to the watchdog.

  • To what extent is the rise in grocery prices a results of altering aggressive dynamics
  • What can we be taught from different international locations which have taken steps to improve competitors within the sector
  • How can governments decrease limitations to entry and enlargement to drive up competitors for shoppers

 

Earlier this month, the Home of Commons Agriculture Committee voted to examine food prices.

The Home of Commons additionally voted unanimously in favour of an NDP movement calling on the federal government to sort out “company greed” within the grocery sector.

In an effort to fight hovering prices, Loblaw Corporations Ltd. stated final week it could be freezing prices all of its No Identify merchandise till Jan. 31, 2023.

Dr. Sylvain Charlebois, director of the Agri-food Analytics Lab at Dalhousie College, stated it could be fascinating to see if different grocers observe Loblaw’s transfer.


With information from The Canadian Press

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