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Toronto Sun
20-05-2025
- Business
- Toronto Sun
Grocery price increases outpace overall inflation for third straight month: StatCan
Published May 20, 2025 • Last updated 7 minutes ago • 1 minute read People shop at a grocery store in Brooklyn on May 13, 2025 in New York City. Photo by Spencer Platt / Getty Images Despite the annual pace of inflation cooling last month, Statistics Canada says consumers continue to pay higher costs for groceries. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The agency reports prices for food purchased from stores increased 3.8 per cent on a year-over-year basis, up from 3.2 per cent annual growth in March. It marks the third straight month that grocery price increases outpaced the overall inflation rate, which was 1.7 per cent in April. StatCan says items that contributed most to year-over-year price acceleration include fresh vegetables, for which prices rose 3.7 per cent, fresh or frozen beef at 16.2 per cent growth, and coffee and tea at 13.4 per cent. Some of Canada's large grocers have warned of price hikes due to added costs from U.S.-Canada tariffs, with Loblaw Cos. Ltd. chief executive Per Bank saying last week the number of tariff-hit products at the grocery store could soon spike as pre-tariff inventory runs out. Loblaw has been aggressive in marking products on display affected by tariffs, a tally that last week reached over 1,000 items, but Bank said the total will rise to more than 3,000 by next week and could peak at double that number within the next two months. Canada Toronto Maple Leafs Columnists Toronto Maple Leafs Sunshine Girls
Yahoo
20-05-2025
- Business
- Yahoo
Grocery price increases outpace overall inflation for third straight month: StatCan
Despite the annual pace of inflation cooling last month, Statistics Canada says consumers continue to pay higher costs for groceries. The agency reports prices for food purchased from stores increased 3.8 per cent on a year-over-year basis, up from 3.2 per cent annual growth in March. It marks the third straight month that grocery price increases outpaced the overall inflation rate, which was 1.7 per cent in April. StatCan says items that contributed most to year-over-year price acceleration include fresh vegetables, for which prices rose 3.7 per cent, fresh or frozen beef at 16.2 per cent growth, and coffee and tea at 13.4 per cent. Some of Canada's large grocers have warned of price hikes due to added costs from U.S.-Canada tariffs, with Loblaw Cos. Ltd. chief executive Per Bank saying last week the number of tariff-hit products at the grocery store could soon spike as pre-tariff inventory runs out. Loblaw has been aggressive in marking products on display affected by tariffs, a tally that last week reached over 1,000 items, but Bank said the total will rise to more than 3,000 by next week and could peak at double that number within the next two months. This report by The Canadian Press was first published May 20, 2025. Companies in this story: (TSX:L) Sammy Hudes, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Global News
15-05-2025
- Business
- Global News
Canadian shoppers to see higher costs amid trade war: ‘No alternative'
Amid the ongoing trade war with the U.S., Canadians could see prices increase further as tariffs and counter-tariffs continue to weigh on everything from pantry staples to beauty products. Companies like Loblaw and Walmart are reporting that they will need to increase prices for consumers, with the former noting that their pre-tariff inventory is set to run out, meaning those items will start seeing an increase. A spokesperson for Loblaw told Global News that the increase could be up to 25 per cent, depending on the product and tariff amount, and applies 'entirely to products coming from the U.S.' Loblaw CEO Per Bank said in a post on LinkedIn on Wednesday that it had been aggressive in marking which products were affected by tariffs, which amounted to slightly more than 1,000 items. Story continues below advertisement But he warned in the post that the total will rise to more than 3,000 in the next week or two, and could reach 6,000 products within the next two months. The company said in a statement this still amounts to less than 10 per cent of the more than 80,000 items the company sells across numerous stores including Shoppers, Loblaw and No Frills. But Bank said in his post that customers would notice changes in categories including natural foods, pantry staples and health and beauty products. As the trade war continues, companies say they are trying to mitigate prices by sourcing out products from other countries, especially with consumers looking for items not from the U.S. Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers, which represents more than 6,900 independent grocery retailers across the country, said that's not an easy process. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'It's hard to just replace everything with alternative suppliers,' he said. 'You just can't do that in a matter of weeks in the food industry, so there will be an impact to consumers. There will still be a number of products still coming from the (United) States where there is no alternative at this point.' 1:49 'Stretching their dollars': New study says Canadians struggle with food prices Similar price increases could be seen at independent grocers, with Sands pointing out that many operate on an overall margin of two per cent. Story continues below advertisement 'So if you're bringing in a product and there's a 25 per cent tariff slapped on that good, that's how much it's going up,' he said. 'You have to pass that on in its entirety, there's just no alternative.' Bank did say he was pleased to see the federal government changed its counter-tariff policies to limit charges to finished food products coming in from the U.S., which saw adjustments to the $60 billion counter-duties previously announced to ease the burden for Canadian companies and consumers. Canada's counter-tariffs have generally targeted items that have alternatives produced in Canada, so areas like dairy, poultry and grains, said Mike von Massow, a University of Guelph professor and food economist in an interview with the Canadian Press. While many items aren't directly tariffed by Canada, there are indirect price pressures from other areas like U.S. metal tariffs, and the general uncertainty brought on by the trade war, von Massow said. Even though Canada has added numerous exemptions to its counter-tariff measures, they remain on high-profile grocery items like orange juice and alcohol as well as a host of other products ranging from uncooked pasta to guinea fowl in a glass jar. 1:19 'My paycheck might only cover daycare': Ontario family struggles as cost of living climbs Sobeys and Metro both told Global News they continue to deal with tariffs and are working to 'minimize impacts' on customers. Story continues below advertisement 'We have been sourcing alternatives to tariff-impacted products to help alleviate pressure for our customers, this has included an expanded selection of local and Canadian products and revised assortment,' a spokesperson for Sobeys wrote. A representative for Metro said they are also working to prioritize Ontario and Canadian products wherever possible and are working with suppliers to 'offer the best possible value.' Walmart is also warning of price increases at least in the U.S., with the company saying it's due to higher costs from U.S. President Donald Trump's tariffs. CEO Doug McMillon told industry analysts Thursday that increases would feel more gradual, but they had already begun as early as April and accelerated this month. Tariffs on countries like Costa Rica, Peru and Colombia are raising costs on groceries like bananas, avocados, coffee and roses, he said. Walmart is absorbing costs on general merchandise within departments and not yet passing along rising costs in some cases. Global News reached out to Walmart Canada to confirm if the retailer would also be raising costs on imported products, but did not hear back by publication. —with files from The Canadian Press and The Associated Press
CBC
15-05-2025
- Business
- CBC
Tariffs hitting shoppers in Canada and U.S., with some prices set to rise at Loblaw stores, Walmart
Social Sharing A trip to the store is about to become more expensive for shoppers on both sides of the 49th parallel, as pre-tariff inventory runs out at Loblaw stores and Walmart is set to raise prices in the U.S. Loblaw Cos. Ltd. chief executive Per Bank said Wednesday in a LinkedIn post that the number of tariff-hit products at the grocery store could soon spike, as products brought into Canada before the trade war began are bought up from store shelves, which means prices for some items will go up, too. Meanwhile, Walmart said it must raise prices in U.S. stores due to higher costs from tariffs implemented by U.S. President Donald Trump, after announcing its first-quarter profit slipped. Loblaw has been aggressive in marking which products are affected by tariffs, a tally it has so far limited to a little over 1,000 items. But that total will rise to more than 3,000 within the next week or two, and could peak at over 6,000 within the next two months, according to Bank's post. "While the tariff situation might be improving between the U.S. and other countries, that's not yet the case here in Canada. In fact, we'll be facing a large wave of tariff-related increases in the weeks ahead," he said. Tariff-affected items will still account for a small share of the roughly 80,000 items the company stocks, but customers will notice changes in categories including natural foods, pantry staples and health and beauty products, he said. "It's been good to see Prime Minister Carney and other leaders engaging in dialogue with U.S. officials, as we're all hoping for a rapid de-escalation of this situation." Bank also said he was pleased to see the federal government has changed its counter-tariff policies to limit the charges to finished food products coming in from the U.S. In mid-April, the government announced several adjustments to the $60 billion in counter-tariffs it announced in March, to ease the burden on Canadian companies and consumers. WATCH | Loblaw warning of rising food prices as pre-tariff inventory runs out: Loblaw warning of rising food prices as pre-tariff inventory runs out 1 hour ago Duration 2:07 Canada's largest grocer, Loblaw, has warned that Canadians will face a 'large wave' of tariff-related price increases in the next few weeks as U.S. President Donald Trump's levies put pressure on supply-chain costs. A key measure for grocers was a six-month suspension of counter-tariffs on a broad range of U.S. goods used in Canadian manufacturing, processing and food and beverage packaging. That means, for example, that a Canadian company could import something like milk if it's used to make another product without the additional counter-tariffs, but that milk for retail sale wouldn't be exempt. The changes mean Canada has essentially paused nearly all of its counter-tariffs, said Tony Stillo of Oxford Economics in a note. He said the changes will reduce price pressures and brings the effective tariff rate increase on the U.S. to nearly zero. From the start, the counter-tariffs excluded U.S. produce like lettuce, which the Canadian market is especially reliant on. Canada's counter-tariffs have generally targeted items that have alternatives produced in Canada, such as dairy, poultry and grains, said Mike von Massow, a University of Guelph professor and food economist. "They put them on things that were highly substitutable, so that if you were willing to make small changes, you weren't going to get impacted as much," he said. "Now, if you are interested in a specifically aged cheddar from Wisconsin, then that's going to go up in price." While many items aren't directly tariffed by Canada, there are indirect price pressures from other areas, like U.S. metal tariffs, and the general uncertainty brought on by the trade war, he said. "The uncertainties with the U.S. [have] the potential to increase prices even in the absence of tariffs." While Canada has added numerous exemptions to its counter-tariff measures, they remain on high-profile grocery items like orange juice and alcohol, as well as a host of other products, ranging from uncooked pasta to guinea fowl in a glass jar. Walmart will try to keep prices 'as low as possible:' CEO Walmart has built-in hedges against some tariff threats. Two-thirds of Walmart's merchandise is sourced in the U.S., with groceries driving much of that. Groceries account for roughly 60 per cent of Walmart's U.S. business. Still, Walmart isn't immune and said the price hikes come even as the company works to absorb the costs of the tariffs. "We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins," said CEO Doug McMillon in a statement. Future sales have become a concern for all retailers for a number of reasons. Many Americans have been pulling back on spending, as they grow uneasy about the economy, and inflation remains elevated. Trump's tariffs on China and other countries threaten the low-price model that is at the core of Walmart's success.
The Market Online
15-05-2025
- Business
- The Market Online
Futures Still Ahead Of Fed Chair Decision
TSX futures took a breather Thursday after a solid run, as trade deal jitters and a wait-and-see stance ahead of the Fed Chair's speech kept investors on edge. Market Numbers (Futures) TSX :Down( 0.08%) 25,596.37TSXV: Flat (0.00%) 665.82DOW: Up (0.10%) 42,272.00NASDAQ: Up (0.22%) 20,323.75 FTSE: Up (0.12%) 8,613.14 In the Headlines: The number of tariff-hit products at the grocery store could soon spike as pre-tariff inventory runs out, said Loblaw chief executive Per Bank, which means prices for some items will go up too. And Ontario drops its budget Thursday, with Premier Ford teasing big infrastructure spends to counter the hit from Trump's tariffs. Economic stimulus is expected to take center stage. Currencies Update: (Futures) Tthe Canadian dollar continues its decent by another 0.04% to $0.7145 U.S., also on the decline against the Euro by 0.13% to $0.6384, and Bitcoin subtracts 1.68% to $143,114.86 Commodities: (Futures) Natural Gas: Down (3.27%), 3.53WTI: Down (0.91%), 63.11Gold: Down (2.13%), 3,180.63 Copper: Up (0.53%) 6.09 To stay up-to-date on all of your market news head to Join the discussion: Find out what everybody's saying check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
