The Competition Bureau said Monday its study will examine to what extent higher grocery prices are related to changing competitive dynamics in the sector and noted that grocery prices are increasing at the fastest rate in 40 years
Canada's competition watchdog is launching a study to examine whether the highly concentrated grocery sector is contributing to rising food costs.
But some grocery industry observers argue that increased efficiencies don't necessarily mean more affordable food. The Competition Bureau said it expects to explore how the government could act to combat grocery price increases by way of greater competition in the industry. In recent years, Canada's big three grocery chains came under fire for a multi-year bread price-fixing scandal and the simultaneous ending of “hero pay” bonuses for front-line workers during the pandemic.
"The price increases that you see on the shelf are coming from the manufacturers and processors and they are not unique to Canada or to the grocery aisle," Wasylyshen said.