MNI INTERVIEW2: Food Prices Still Problem Across G7- Champagne

Food inflation remains a major problem across G7 economies, Canada's finance minister told MNI Tuesday after a meeting with his counterparts and a day after a new domestic multibillion tax break on groceries for low-income families.

“Affordability is top of mind in all G7 countries,” Francois-Philippe Champagne said in an interview at Parliament. 

Carney and Champagne returned from overseas trips to win new trade with China and Europe to re-open Parliament this week with a shift in focus to affordability at home. The government on Monday made the grocery rebate the signature announcement as the legislature resumed.

Champagne said the move was needed because even voters who agreed the government has a plan to boost affordability over time are still upset about the short-term pain of their daily bills.

“In a family budget, people would spend most of their money first on housing, and that’s why we need to build more houses,” he said. “The second thing is food, then it’s cars, it’s usually cellphone bills and student loans.”

While Canadian inflation has been lower than in the United States, grocery bills are still rising at a 5% pace. High profile items like beef are up 17% and coffee by 31%. (See: MNI INTERVIEW: Ranchers See Beef Costs Staying Elevated)

“When it comes to food we understood that people were concerned," Champagne said. “What people needed is a boost now, because if you look at the excess food inflation since 2020, that was around $782. So that’s what we’re trying to boost, to say to people, we get it.”