01:07:51 EDT Sun 12 May 2024
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CA



Metro Inc
Symbol MRU
Shares Issued 233,251,814
Close 2023-05-04 C$ 77.57
Market Cap C$ 18,093,343,212
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Globe says Loblaw, rivals hear food inflation abating

2023-05-05 07:54 ET - In the News

See In the News (C-L) Loblaw Companies Ltd

The Globe and Mail reports in its Friday edition that the worst of food inflation is probably behind us. The Globe's Matt Lundy writes in the Decoder column that the trend is becoming more favourable. Last month, the Bank of Canada said cost pressures were softening across the food-supply chain, which should bring relief to shoppers. Farmers enjoyed a better growing season in 2022, with higher yields of key crops, while energy costs have tailed off. "Historical experience suggests that the recent easing of cost pressures in production and distribution will lead to declines in food price inflation over the coming months," the BOC said in its monetary policy report. To date, there has been slight progress. Grocery prices rose at an annual rate of 9.7 per cent in March, down from increases of more than 11 per cent. That pace is still uncomfortably steep for many households. Moreover, weaker inflation for groceries does not mean prices are dropping -- merely that price growth is slowing. Cost concerns have not fully subsided, either. On Wednesday, executives at Loblaw pointed the finger at food suppliers -- specifically, multinational companies of consumer packaged goods -- for "outsized cost increases."

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