Canadian Prime Minister Mark Carney has announced a sweeping set of measures designed to ease the burden of rising food and grocery prices, particularly for low- and modest-income households facing mounting cost-of-living pressures.
Speaking at a press conference, Carney pointed to a combination of global challenges driving food prices upward, including supply chain disruptions, climate-related weather events, international conflicts, and the impact of tariffs. He noted that these pressures have caused food prices to rise faster than overall inflation, leaving many families struggling to keep up.
To provide direct relief, the government will increase the Goods and Services Tax GST credit by 25 percent for a five-year period. According to Carney, this move is expected to put hundreds of extra dollars into the bank accounts of more than 12 million Canadians, offering meaningful support as grocery bills continue to climb.
In addition to the expanded credit, the government will issue a one-time payment this year equal to 50 percent of the existing GST rebate. This immediate boost is aimed at helping households manage short-term financial stress caused by persistently high food prices.
Affordability has become one of the most pressing issues across Canada, with grocery costs remaining elevated even as broader inflation shows signs of easing. While consumers have repeatedly voiced concerns, food retailers and traders have cited extreme weather in major farming regions and tariff-related costs, including those linked to U.S. President Donald Trump’s trade policies, as reasons for passing on higher prices.
The federal government estimates the new measures will 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 relief, Ottawa is also investing in the broader food system. The budget includes C$500 million for capital investment in the food sector, C$150 million to support small and medium-sized enterprises, and additional funding for food banks and community-based food programs.
At its core, the announcement reflects a growing recognition that food insecurity is not just an economic issue, but a human one. For families choosing between paying bills and putting nutritious meals on the table, these measures signal an effort by the government to step in where daily life has become increasingly unaffordable.
