Grocery store prices have seen an unprecedented spike across the country, and now the Fed is launching an investigation to investigate why.
On Monday, the Competition Bureau of Canada announced it will study grocery store prices to help find ways to combat food inflation. Even though inflation has eased overall this summer, food prices have remained up and down.
“Grocery prices in Canada are rising at the fastest rate seen in 40 years,” they noted, adding the factors that have been blamed so far: the war in Ukraine, supply chain disruption, extreme weather and higher input costs.
The study will continue through June 2023, and officials will seek answers to three primary questions to see if competitive factors are also at work.
Here’s what they hope to answer:
- To what extent are higher grocery prices the result of changing competitive dynamics?
- What can we learn from steps other countries have taken to increase competition in the sector?
- How can governments lower barriers to entry and expansion to stimulate competition for consumers?
“Competition benefits all Canadians,” the Bureau wrote. “More competition means lower prices, more choices and better convenience for consumers.”
Anyone interested in providing submissions on these questions and any other matters relevant to retail grocery competition in Canada is invited to do so. The deadline for submissions is December 16.
“This study is not an investigation into specific allegations of infringement,” the Competition Bureau explained. “If we do find evidence during this study that someone might be doing something against the law, we will investigate and take appropriate action.”
