Canadian PM Carney unveils multibillion-dollar push to lower food costs

"Carney has been under pressure from the opposition to lower prices of food and other essentials for lower-income people. Canadian Prime Minister Mark Carney has announced a multibillion-dollar package as part of a series of measures aimed at lowering the costs of food and other essentials for low-income families. On Monday, Carney announced a five-year 25 percent boost to the Goods and Services Tax (GST) credit that starts this year."

"The GST credit, which is being renamed the Canada Groceries and Essentials Benefit, will provide additional, significant support for more than 12 million Canadians, Carney said in a statement. The government will also provide a one-time top-up equivalent to a 50 percent increase this year to eligible residents. We're bringing in new measures to lower costs and make sure Canadians have the support they need now, Carney said."

"The government is also setting aside 500 million Canadian dollars ($365m) from the Strategic Response Fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians, and will create a 150 million Canadian dollar ($110m) Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and the organisations that support them."

Canada will increase the Goods and Services Tax (GST) credit by 25 percent for five years and rename it the Canada Groceries and Essentials Benefit, providing added support to over 12 million Canadians. A one-time top-up equivalent to a 50 percent increase will be paid to eligible residents this year. The measures are projected to cost C$3.1 billion in the first year and between C$1.3 billion and C$1.8 billion annually thereafter. Food price inflation remains elevated because of global and domestic factors, including supply chain disruptions, higher US tariffs and climate change. The government will allocate C$500 million from the Strategic Response Fund and create a C$150 million Food Security Fund to help businesses and SMEs manage supply-chain costs without passing them on to consumers.

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