Food inflation in Canada climbed again in August, reaching 3.4%, exactly as forecast. Grocery prices rose 3.5%, running a full 1.6 points higher than the general inflation rate. For every month of 2025 so far, food inflation has outpaced overall inflation. The grocery aisle has become a pressure point for households across the country, and it’s not just the market at work — it’s Ottawa.

Government policies have played a central role. The GST holiday, sold as relief, distorted retail pricing signals. More importantly, counter-tariffs against U.S. products — introduced as a political bargaining chip — artificially inflated costs. The federal government claimed to be protecting Canadian interests, but in reality, these measures landed squarely on consumers’ grocery bills.

The impact has var

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