While Canada’s recently announced grocery rebate has yet to be implemented, Elise Chartrand from Embrun, Ont., already knows what she would do with the extra money. The 76-year-old said she plans to treat herself to some of the food items she’s been avoiding at the grocery store lately, due to rising costs.
“I’ve been so hungry for watermelon and some fresh fruits,†Chartrand told CTVNews.ca in a telephone interview on March 30. If eligible for the rebate, she may receive as much as $225.
“I haven’t bought fresh fish in so long, it’ll be so nice to get a big piece of halibut … That should take care of the money rebate real quick.â€
Included in this year’s federal budget, which was tabled on March 28, the grocery rebate is a one-time payment aimed at helping Canadians deal with the rising cost of living. Once a bill implementing the measure passes in Parliament, the rebate will be offered through Canada’s GST/HST tax credit system and those with low or modest incomes will be eligible to receive it.
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Although recent data shows that Canada’s annual inflation rate dropped from 5.9 per cent in January to 5.2 per cent in February, grocery prices remain high across the country. According to data from Statistics Canada, food prices .
Chartrand is one of dozens of Canadians who wrote to CTVNews.ca about the rising cost of food and how they would benefit from the proposed grocery rebate. Food inflation remains a growing concern among Canadian consumers, with food prices hitting their highest levels in decades, according to data from Statistics Canada.
The federal government’s proposal of a grocery rebate comes at a time when the cost of living remains elevated across the country and some say they are struggling to afford basics such as housing or rent. The amounts vary according to family status, with a single individual eligible for up to $234 and couples with two children eligible for up to $467.
Similar to Chartrand, several Canadians explained that they would put this money towards more expensive food items, such as meat or fruits and vegetables. Frozen foods and non-perishable items such as canned goods are grocery items many said will also be high on their priority list, as they can be stored for longer periods of time.
Right now, the bulk of Chartrand’s monthly grocery bill consists of fish and meat products, including bacon and pork chops. Not only does she enjoy eating them, but she’ll incorporate these foods into various meals, she said. She will often buy bacon and pork chops in bulk and store them in the freezer until she needs them. The same goes for grain products such as bread, another item Chartrand will often purchase from the grocery store. She’ll also buy chocolate, she said.
“I always have some [at home],†Chartrand said. “But I buy the bars when they’re on sale for $1.â€
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The average price of fresh or frozen fish increased 9.8 per cent between February 2022 and February 2023, . Within the same time frame, the average price of fresh fruit has risen 10.5 per cent, while fresh vegetables cost 13.4 per cent more year-over-year.
Chartrand, who lives in a small community 40 kilometres southeast of Ottawa, is currently retired and relies on the guaranteed income supplement benefit to pay for food. While she said the grocery rebate would be helpful, it’ll likely only cover part of one trip to the store. Each month, Chartrand spends at least $500 on groceries for herself, she said.
“To me [the rebate] is a splurge, it won’t help me all year-round,†she said.
CHILDREN’S SNACKS A PRIORITY FOR SINGLE MOTHER IN WATERLOO, ONT.
Even if she received the grocery rebate, Brooklyn Hilton from Waterloo, Ont., said she wouldn’t change her spending habits in response. She would put the extra money towards her weekly trips to the grocery store, and wouldn’t buy more than what she needs.
“It’s not helping enough to be able to spend any more than what I can afford,†she told CTVNews.ca in a telephone interview on March 30. “Every little bit helps, but it’s still not enough.â€
Hilton is a receptionist at a local retirement home. The 30-year-old single mother said she spends about $600 per month on groceries for herself and her six-year-old daughter.
Hilton usually spends most of her grocery money on meat and fish products, such as chicken and salmon. A large portion of her monthly budget also goes towards children’s snacks, such as Lunchables, cookies, Jell-O and apple sauce, she said.
ONTARIO MOTHER OF THREE TO STOCK UP ON FROZEN FOODS, CANNED GOODS
Meanwhile, Lizz Lambert-Lavis from Arthur, Ont., spends as much as $1,400 on groceries each month, she said, which is more than she would spend on food purchased from stores before the COVID-19 pandemic.
“We were spending maximum $300, maybe $400 every two weeks [before the pandemic] and we would have a full fridge,†the 30-year-old wrote in an email to CTVNews.ca on March 30. “Now it’s [bare] essentials.â€
If she and her partner received the grocery rebate for their family of five, they would stock up on some of the items they buy regularly, Lambert-Lavis said. These include canned goods, such as soups, and frozen foods, such as vegetables, French fries and pizza, which they plan to store at home for use over the next few months.
Lambert-Lavis and her partner are factory workers in a small community about 100 kilometres northwest of Toronto. The couple, along with their three children aged nine, seven and five, primarily spend their grocery money on meat and fish products, beverages and frozen foods.
QUEBEC SINGLE FATHER BUYS FRESH FRUIT IN BULK
Steven Heerelal is a single father with two children, aged 10 and six. With an average monthly grocery bill of about $900, he said even the maximum grocery rebate of $467 is barely enough to cover two weeks of food for his family of three.
“It’s not something to really be excited about it,†Heerelal told CTVNews.ca in a telephone interview on March 30.
Each month, the 44-year-old will spend about $150 on fruits and vegetables, often purchasing items such as lettuce and oranges, which have seen some of the largest annual increases in price. Data from Statistics Canada shows the price of lettuce has increased 20.2 per cent between February 2022 and February 2023. The price of oranges has increased 15.1 per cent year-over-year.
Over the past year-and-a-half, Heerelal said he has noticed a steady rise in grocery prices.
Heerelal typically goes grocery shopping once every two weeks and in an effort to save on food, he’ll shop at wholesale stores such as Costco to buy items in bulk. If he receives the grocery rebate, Heerelal plans to put the money towards his next two weeks’ worth of groceries, he said. Even with rising food prices, he has not shied away from spending on items his children enjoy.
“I’m not going to deprive my kids … I don’t think it’s fair upon them,†the Montreal resident said, referring to items such as fresh fruit and children’s snacks. “No matter the cost, if we need it, I’ll still buy it.â€
SASKATCHEWAN SENIOR CUTS DOWN ON MEAT TO SAVE MONEY
Based in Regina, Dennis William said he shops at three different grocery stores in search of the best deals when purchasing groceries for himself. William, who is a regional manager for a pharmaceutical company, keeps a close eye on weekly flyers to see what’s on sale as well. Eating less meat than he did in the past has also helped him save on groceries, he said.
“I'm almost retirement age and will have to continue to really watch my food expenses each month,†the 64-year-old wrote in an email to CTVNews.ca on March 30.
William currently spends about $250 on groceries each month, he said. If he receives the grocery rebate, he plans to spread the money out over a few months and wait until items go on sale before purchasing them in an effort to stock up.
“I won’t use it up all at once,†he told CTVNews.ca in a telephone interview on March 31.
Most of his money goes towards fruits, vegetables and dairy products, which have increased significantly in price at his local grocery stores over the last few months, he said. William, like a number of Canadians who reached out to CTVNews.ca, said the proposed grocery rebate does not offer enough support to Canadians. Over the span of a year, the one-time rebate offers the equivalent of an extra $39 per month for a family of four in Canada.
“The [government] should consider giving this grocery rebate more than just the one time,†William wrote in his email.
Meanwhile, instead of spending the money on groceries, some said they plan to use it to pay other bills, including necessities such as heating. A handful of others said they would donate their rebate to their local food bank.
WHAT DO WE KNOW Â鶹´«Ã½ THE GROCERY REBATE?
According to terms outlined in , grocery rebate amounts will vary according to family status. Some examples of how the one-time rebate will apply include:
- Couples with two children could receive up to $467
- A single person with no children could receive up to $234
- A senior could receive up to $225
Although the budget features hypothetical scenarios where a couple making $38,000 per year with two children and an individual earning $32,000 per year with no children both received maximum rebate amounts, no specific income brackets are mentioned as part of the eligibility criteria.
However, since the grocery rebate will be offered through the GST/HST tax credit mechanism, could shed some light on who might qualify to receive the maximum grocery rebate amounts. The GST/HST benefit decreases as income rises, and ends entirely once income reaches $50,000 or more for an individual with no children, $55,000 or more for a couple with no children, and $65,000 or more for a couple with four children.
Based on the , released annually by the Agri-Food Analytics Lab at Dalhousie University, it costs approximately $16,288 per year to feed a family of four in Canada. This represents an increase of slightly more than $1,000 compared to 2022. Items such as vegetables, dairy products and meat are expected to see the largest increases in price, the report said.
GROCERY STORES ACCUSED OF CONTRIBUTING TO RISING PRICES
Inflation related to food sold in stores has outpaced overall inflation since late 2021, . The issue of inflated grocery prices is such a concern that it has become the focus of a parliamentary study led by a committee of MPs.
At a hearing last month, lawmakers interrogated the executives of Canada’s major grocery chains, which face accusations that their stores are responsible for food inflation. In recent months, these chains have also been criticized for posting profits as grocery prices rise. , for example, reported a double-digit increase in profits in January, compared to the same time one year ago. Additionally, Loblaw Cos. Ltd. said it expects to see profits rise faster than sales in 2023.
But while facing the parliamentary committee in March, the CEOs and presidents of Loblaw Cos. Ltd., Metro Inc. and Empire Co. Ltd. each denied that they were responsible for rising food prices. Instead, they argued food inflation is an international issue and their margins on food-related profits have been low.
According to Gary Sands, senior vice-president of public policy with the Canadian Federation of Independent Grocers, input costs from suppliers and other parts of the grocery supply chain are contributing to rising food prices.
Natural disasters such as flooding in British Columbia and droughts in California have also restricted food-related imports and production, contributing to price increases as well. As a result, experts say grocery prices are not likely to drop over the next few months.
With files from CTVNews.ca’s Senior Digital Parliamentary Reporter Rachel Aiello and writers Megan DeLaire and Tom Yun. Graphics by Jesse Tahirali.