The Feds Are Investigating 'Greedflation' In Canadian Grocery Stores & Here's What That Means
Your grocery bill might be super high for a reason.
A No Frills Store in Toronto. Right: A Safeway store in Calgary.
The Canadian government is starting an investigation into what is being called '"greedflation" by some of Canada's top grocery store chains.
According to an NDP-tabled motion that was accepted unanimously by the House of Commons, parliament will be asking Canada's Competition Bureau to investigate grocery store chain profits.
The motion, which got an uncommon 327 yeas to 0 nays in parliament, is not only asking for a formal investigation, and also recognizes that "corporate greed is a significant driver of inflation" in Canada.
In the motion, the government recognizes that wages and agricultural prices are not reflective of the profits that the corporations are reporting.
What is "greedflation?"
One of Canada's biggest grocery store chains, Loblaws, reported a 40% increase in profits in the first quarter of 2022 according to CTV News.
Meanwhile, Empire, which owns Sobey's and FreshCo, among others, reported a quarter profit of $203.4 million in March this year, which is up 15.4% as compared to last year, according to Global News.
This is what is being called "greedflation" by the NDP — high profits of grocery store chains that is basically driving up inflation.
The new motion by the government resolves to take further action to support Canadians who might be struggling with the cost of groceries.
Part of that strategy includes the aforementioned investigation into grocery chain profits.
It proposes closing tax loopholes that have allowed CEOs and large corporations to avoid "$30 billion in taxes in 2021 alone".
Furthermore, it recommends instating laws that prevent companies from exploiting their "dominant position in a market." This includes increasing penalties for price fixing and strengthening competition laws.
The motion also will be "inviting grocery CEOs" before a committee investigating high food prices.
This motion, which saw support from every single party, comes after recent inflation numbers showed that grocery prices have increased at the fastest pace since 1981.
Loblaws recently announced that it would be freezing the price of all No Name brand food until the end of January 2023.
This will affect over 1,500 products sold in Loblaws stores.
This article's cover image was used for illustrative purposes only.
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