Carney unveils new measures aimed at lowering grocery costs for Canadians

Prime Minister Mark Carney announced Monday a series of new measures aimed at making groceries and other essential goods more affordable, as the federal government moves to cushion Canadians from rising costs and economic uncertainty.

As part of that effort, the government is expanding direct financial supports for low- and modest-income Canadians and investing in food security, domestic production and supply chains.

A central plank of the announcement is the introduction of the Canada Groceries and Essentials Benefit, which replaces the existing GST credit. Beginning in July 2026, the benefit will increase by 25 per cent for five years.

In addition, recipients will receive a one-time payment this year equal to a 50 per cent boost.

The government says a family of four could receive up to $1,890 in 2026 and roughly $1,400 annually over the following four years. Single Canadians could receive up to $950 this year and about $700 per year thereafter. More than 12 million Canadians are expected to benefit.

The government is also taking steps to address food supply costs and food insecurity.

It will allocate $500 million from the Strategic Response Fund to help businesses absorb supply chain disruption costs without passing them on to consumers. A further $150 million will be created through a new Food Security Fund under the Regional Tariff Response Initiative to support small and medium-sized businesses and related organizations.

To reduce food production costs, the government is introducing immediate expensing for greenhouse buildings. Producers will be able to fully write off greenhouses acquired on or after Nov. 4, 2025, provided they are in use before 2030. The measure is intended to encourage domestic food production and investment.

An additional $20 million will be directed to the Local Food Infrastructure Fund to help food banks and community organizations deliver more nutritious food to families facing immediate need.

Looking longer term, the government said it is developing a National Food Security Strategy focused on strengthening domestic food production and improving access to affordable, nutritious food. The strategy will also examine unit price labelling and enhance the Competition Bureau’s ability to monitor and enforce competition in food supply chains.

Carney said the measures are part of a broader effort to build a more resilient economy while easing cost pressures on Canadians now.