Competition Bureau Canada has announced it will be studying the grocery industry as prices reach a four-decade high.
The examination will look at how governments could combat grocery price increases through more competition in the sector, the independent agency said in a statement on Monday.
“The study will examine various issues with the goal of recommending measures that governments can take to help improve competition in the sector,” the Competition Bureau said in a release on Monday.
“Canadian consumers have seen their purchasing power decline. This is especially true when buying groceries. In fact, grocery prices in Canada are increasing at the fastest rate seen in 40 years,” said the competition agency.
The watchdog said it will make recommendations for the federal government in its final report, which it plans to publish in June 2023.
“Many factors are thought to have impacted the price of food including extreme weather, higher input costs, Russia’s invasion of Ukraine, and supply chain disruptions. Are competition factors also at work? To find out, the Bureau will study this issue.”
Submissions from “interested parties” on retail grocery competition in Canada will be accepted until Dec. 16.
Last week, Statistics Canada released its latest inflation report that showed while overall inflation cooled slightly in September, the cost of groceries continues to climb.
Grocery prices rose at the fastest rate since August 1981, with prices up 11.4 percent compared with a year ago. Prices for bakery products were up almost 15 percent, while the cost of fresh fruits and vegetables rose by nearly 12 percent.
Last week, the House of Commons unanimously passed an NDP motion calling on the federal government to take steps to tackle “greedflation,” including asking the competition bureau to investigate grocery chain profits.
In an effort to combat soaring prices, Loblaw Companies Ltd. said last week it would be freezing prices all of its No Name products until Jan. 31, 2023.
