QUESTION PERIOD — Finance
Cost of Food
March 12, 2026
Senator Moreau, on Tuesday, Senator Martin questioned you about Canada’s food inflation, which you blamed on world supply chain issues. I looked at the food inflation numbers for the G7, and they don’t support your argument. Canada’s food inflation of 7.3% is two times that of Japan and the U.K., two and a half times that of the U.S., three times that of Germany and Italy and four times that of France. Since supply chains are obviously not the issue, to what should we attribute Canada’s food inflation?
Thank you for your question. My answer to Senator Martin was that inflation is tied to global supply chains, climate-driven shocks and currency pressures that have been volatile in recent years. Currency pressure directly affects grocery prices. The fact is that what is happening here in Canada is happening elsewhere in the world because of a global disruption. When the United States totally changes the way they trade with the world, it has a ripple effect at the international level. That was my answer to Senator Martin.
There are other factors that contribute to problems we have in our grocery stores, such as climate change. Lettuce, tomatoes and everything else that we find on shelves —
Thank you, Senator Moreau.
Well, Senator Moreau, of the G7 countries, Canada and the U.S. are the only net exporters of food. We get some fruit and vegetables in the winter but are more self-sufficient than any of the G7 countries. Japan only produces 38% of its food, but they — like the U.S. — do not have any carbon taxes on food production. When are you going to admit that the government’s taxation policies are the source of our food inflation and get rid of the policies burdening Canadian consumers?
If you want to compare the position of Canada among the G7, let me share a few things with you. Canada has the lowest net debt-to-GDP ratio in the G7. Canada has the second-lowest deficit-to-GDP ratio in the G7. Canada is — among the G20 countries — the second-best country for doing business. It is not the government saying that; it is the Economist Intelligence Unit. I think we have a very strong fiscal position as well as a strong economy —
Thank you, Senator Moreau.
