Prices on thousands of grocery items to rise despite tariff break, says Loblaw

Yahoo

2 days ago

Relaxed tariff rules are easing some concerns about prices, but consumers should still expect to pay more for food, says Loblaw Cos. Ltd.
Last month, the Canadian government announced a six-month tariff reprieve for items used in food and beverage processing, manufacturing and packaging.
Loblaw said the policy and a stabilized loonie are helping to reduce the risk of a sharp spike in food prices, but thousands of items are still expected to cost more.
'Tariffs remain on food products imported from the U.S. like produce, rice, pasta, dairy and coffee, as well as health and wellness products including soap, shampoo and cosmetics,' the company said in a recent Food Inflation Report. 'In a conventional grocery store, there can be upwards of 80,000 items, and consumers can expect tariff-related increases on approximately 6,000, about half of which are food.'
The grocery chain earlier this month also warned that food prices could surge as pre-tariff inventory runs out, and it has added a 'T' symbol to products affected by tariffs.
Loblaw said it and other grocers are looking at sourcing tariff-vulnerable items from other countries to mitigate price impacts.
Grocery price increases outpace overall inflation
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Food inflation reached 3.8 per cent in April, surpassing the overall consumer price index of 1.7 per cent, according to Statistics Canada data.
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