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Canada Unveils $3.1 Billion Plan to Cut Food Costs

1/27/2026

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Summary

Story summary

Canadian Prime Minister Mark Carney announced a multibillion-dollar package to reduce food and essential costs for low-income families.
The plan includes a 25 percent increase to the Goods and Services Tax (GST) credit over five years and a one-time top-up for eligible residents, costing 3.1 billion Canadian dollars in the first year.
Despite a 2.4 percent overall inflation rate, food price inflation remains high due to supply chain issues and US tariffs.
Opposition parties are urging Carney to tackle rising costs amid escalating trade tensions with the US.

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Story summary

Canadian Prime Minister Mark Carney announced a multibillion-dollar package to reduce food and essential costs for low-income families.
The plan includes a 25 percent increase to the Goods and Services Tax (GST) credit over five years and a one-time top-up for eligible residents, costing 3.1 billion Canadian dollars in the first year.
Despite a 2.4 percent overall inflation rate, food price inflation remains high due to supply chain issues and US tariffs.
Opposition parties are urging Carney to tackle rising costs amid escalating trade tensions with the US.