A new report from the Standing Committee on Agriculture and Agri-Food shows there are multiple factors causing the current inflationary environment, a June 14 news release from the Retail Council of Canada (RCC) said.
In the release the RCC noted it’s encouraged by the report as the findings are markedly different from the surrounding rhetoric at the outset of the hearings.
The report stated there are multiple factors causing inflation with most being due to global events driving up input costs in the supply chain long before food makes it to Canadian grocery stores.
“The combined roles of cost spikes for feed, fuel and fertilizer, compounded by supply chain disruptions, labour shortages, and climate events, have been the real drivers of food price inflation,” the report said.
The release also said the report noted the expert opinion that there’s no “greedflation” in Canada’s grocery sector. The Committee declined to offer any evidence that grocers are profiting from food inflation.
“While we welcome the collaborative tone of the report, we would caution against increased government intervention in the operational aspects of the retail food business. It is a multilayered and dynamic business that works well for Canadian consumers, jobs, and investment – and there is no evidence to suggest that prescriptive government intervention would do anything to lower food prices for Canadians,” RCC said in their release.
Related Articles
Canadian Ag Well Set Up to Weather Inflation, Rising Interest Rates
Trade Issues, Inflation and Future Farm Bill Weigh on U.S. Growers
Canadian Food, Beverage Manufacturing Sales Up 10.6 Per cent in 2022
