Food affordability: Rebates and price freezes aim to ease soaring food costs

The federal government announced an enhanced GST credit, a one‑time top‑up and new funding for supply‑chain resilience, while Manitoba froze the retail price of milk for a year; food inflation was over 5% in December 2025.

Federal and provincial officials have put forward different measures to address rising grocery costs for Canadians. Ottawa announced the Canada Groceries and Essentials Benefit, which raises the GST credit by 25% and includes a one‑time payment equal to 50% of this year’s GST credit, and said the enhanced credit will run for five years. The federal plan also includes funding for supply‑chain resilience and for the Tariff Response Initiative. Separately, Manitoba set a maximum retail price for a litre of milk for the year as an immediate affordability step. Key details: - Federal rebate: the GST credit increase of 25% plus a one‑time payment equal to 50% of this year’s GST credit, with the enhanced credit set to run for five years. - Funding commitments: Ottawa announced $500 million for food network and supply‑chain resilience and an additional $150 million for the Tariff Response Initiative. - Manitoba measure: the provincial government locked in a maximum retail price for a litre of milk for the year. - Inflation context: Statistics Canada reported food inflation topped 5% in December 2025, and Dalhousie University projected food costs could rise about $1,000 for an average family of four in 2026. Summary: These actions are intended to provide some immediate relief to households while governments also pursue longer‑term steps to stabilise food prices. Direct payments and targeted price limits are the short‑term elements, and federal funding is aimed at improving supply‑chain resilience over time. The enhanced GST credit’s five‑year schedule is specified; broader effects on grocery prices are undetermined at this time.