The Globe and Mail reports in its Wednesday, Jan. 28, edition that Metro chief executive officer Eric La Fleche supports a proposed tax credit increase to help lower-income Canadians with rising food costs.
The Globe's Susan Krashinsky Robertson writes that on Tuesday Mr. La Fleche said food inflation has been a persistent concern. "I will not make any comment on the financial framework of the government, but providing help to people in need is a good thing."
Food inflation has begun to accelerate recently, growing 5 per cent on an annual basis in December, nearly double the rate of general inflation, according to Statistics Canada. That follows a 4.7-per-cent increase in November.
On Monday, Prime Minister Mark Carney announced a multibillion-dollar proposal to increase the GST credit for low- and moderate-income families, renaming it the Canada Groceries and Essentials Benefit Act, in response to rising food prices.
Metro is experiencing ongoing cost inflation for fresh foods, which Mr. La Fleche noted the retailer does not fully pass on to consumers due to the high amounts.
But more price hikes are on the way, starting next week when the major grocers' annual blackout period on price increases ends.
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