Prime Minister Mark Carney announced a new grocery and essentials benefit on Monday, framing it as immediate relief for Canadians facing rising food costs while the federal government pursues longer-term economic reforms.Speaking at a press conference in Ottawa, Carney said affordability remains a top concern for families, seniors, and young Canadians, despite recent signs that inflationary pressures are easing.“Our responsibility is to help people through this moment while our broader plans take hold,” Carney said..Carney announced the launch of the Canada groceries and essentials benefit, which expands the existing GST credit. Under the plan, the GST credit will be increased by 25% for five years, along with a one-time top-up equivalent to 50% of the annual credit this year.According to the government, a family of four that currently receives about $1,100 per year through the GST credit would receive up to $1,890 this year, followed by approximately $1,400 annually over the next four years. Single Canadians would receive up to $950 this year and about $700 annually thereafter. More than 12 million Canadians are expected to benefit.Carney said the measure is intended to offset food price increases that have persisted since the pandemic, citing global supply chain disruptions, tariffs, climate-related events, and geopolitical instability as contributing factors..The prime minister also announced $500 million in federal funding to support capital investments in Canada’s food sector, aimed at expanding domestic production, increasing productivity, and strengthening supply chains. An additional $150 million will be directed toward small and medium-sized food businesses to help them adapt to trade disruptions and rising costs.Carney said the government is developing a national food security strategy that will include unit price labelling to help consumers compare prices, increased oversight by the Competition Bureau, and targeted measures to address food insecurity in northern and remote communities. He also announced a $20 million top-up to the Local Food Infrastructure Fund to support food banks and community food programs..The affordability measures were presented as part of a broader economic strategy focused on reducing Canada’s reliance on the United States and increasing resilience to global economic shocks. Carney cited new trade and security partnerships abroad, accelerated infrastructure development, and housing construction initiatives as key components of that approach.Carney said Canada’s economy has added 190,000 net new jobs since August and noted that inflation has returned to the Bank of Canada’s target range. He also pointed to declines in child-care fees and telecommunications costs as signs that affordability pressures are beginning to ease, while acknowledging that grocery prices remain a challenge for many households.
