Province unveils findings of grocery price study

Critics say the Manitoba government’s months-long study of grocery prices and its response will do nothing to lower costs for Manitobans.

Finance Minister Adrien Sala on Monday unveiled the report and three new measures government is taking, including giving $2.5 million to Harvest Manitoba to create a new “food transformation centre,” restoring a nutritious food basket tool to regularly measure the cost of food per region and introducing legislation to mandate unit pricing in grocery stores.

“We know there’s more to do,” Sala said, citing steps his government has already taken to address food inflation in Manitoba that’s among the highest in Canada. It has targeted big-grocer property contracts that prevent competition from opening nearby and banned predatory pricing so a consumer’s data can’t be used to charge them more. On July 1, the provincial sales tax is being removed from all grocery foods in Manitoba.

“This study will help guide the next steps,” Sala said of the 40-page report. “We’re committing today to bring in more transparency for Manitobans by ensuring that they can compare and contrast pricing in grocery stores to help them make decisions to save money.”

Price transparency is useful but doesn’t help those who don’t have enough income to buy food in the first place, said Molly McCracken, Manitoba director of the Canadian Centre for Policy Alternatives.

“Corporate grocery chains continue to earn substantial profits while food-bank use is at record levels, and Manitobans on social assistance or low wages cannot afford the basics,” said McCracken.

“We know there’s more to do.”

The Canadian Centre for Policy Alternatives is a think tank that advocates for greater income equality.

McCracken called on the province to tax windfall corporate grocery-store profits and use that revenue to improve social assistance, targeted income transfers for the working poor and to build more social housing.

The $2.5 million to help Manitoba Harvest take bulk donations from farmers and grocery stores to prevent food from going to waste may help food banks operate more efficiently, but they were never intended to be a long-term solution to poverty and food insecurity, she said.

“Today, food banks are filling gaps left by the province,” she said.

Progressive Conservative Leader Obby Khan said Premier Wab Kinew hasn’t kept his promise to address the high cost of groceries.

“This study shows absolutely nothing,” said Khan, who called it a “slap in the face” to Manitobans who are struggling with the cost of living. “Everyone knows the prices of groceries have gone up. What is this government going to do to lower prices?

“We have a historic number of Manitobans — over 60,000 — visiting food banks a month.”

Khan said Manitoba’s cost of living increased in May 4.6 per cent, which was higher than most other Canadian provinces. He repeated his call for the province to reduce the amount of income tax Manitobans pay, by nearly doubling the basic personal exemption to $30,000.

“It’s actually appalling that in a time of financial crisis and affordability crisis, that this is the best this NDP government can put forward,” he said.

“This study shows absolutely nothing.”

Sala said legislation is coming that will require all stores to display pricing for food that shows the cost of an item per unit of measurement, such as grams or litres. That will help customers compare products to find the best value, and to call out “shrinkflation.”

Unit pricing could help consumers make informed choices and it could add to operating costs for smaller businessess, the Canadian Federation of Independent Business said Monday.

“Large grocery chains have dedicated pricing and compliance systems already in place, while many independent retailers would have to absorb new costs and administrative work,” said Brianna Solberg. “The government should ensure this policy does not create another competitive disadvantage for small businesses.”

She called on the province to consult with small businesses to ensure those burdens are minimized, provide sufficient time for implementation and to consider exemptions or flexibility for very small retailers.

Grocery prices aren’t likely to come down until until high energy prices fall, said University of Winnipeg economics Prof. Phil Cyrenne.

Energy prices are a key input into food prices through production, distribution and retail costs, Cyrenne said.

“Unless energy prices and restrictions on farmers are reduced, there is little short-term hope that food prices will moderate,” he said.

Manitoba’s inflation rate was 4.6 per cent in May compared with 4.3 per cent in April, Statistics Canada said Monday. It was the third-highest rate among provinces, trailing only Nova Scotia (5.2 per cent) and New Brunswick (4.7 per cent).

Statistics Canada said higher gasoline prices because of the U.S. war with Iran pushed Canada’s inflation rate to 3.2 per cent.

carol.sanders@freepress.mb.ca

chris.kitching@freepress.mb.ca