Canada has been trying for months to get grocers to help curb inflation by freezing prices.
There was a blackout period on supplier price increases, but that will be coming to an end this week, and Metro was the first to announce the cost of some products will be going up, reports Global News.
During Metro’s first quarter earnings call on Tuesday, CEO Eric La Fleche said suppliers will be increasing prices, which will be passed on to shoppers.
La Fleche said increases are going back to “more normal levels” compared to the spikes seen during the COVID-19 pandemic and post-pandemic.
The average price hike, according to the Metro chief, is in the mid-single digits. Some will be below that mark, but other commodity-driven products will be higher.
Grocery inflation in Canada has settled over the last few months, reports Global News. It currently stands at 4.7%, and Metro said its food basket rate was 4% during the first quarter, which is a considerable improvement over the previous quarter when it was 5.5%.
Furthermore, La Fleche believes prices are starting to come back down to more normal levels.
Federal Industry Minister Francois-Philippe Champagne blasted Metro’s price increase announcement and hoped shoppers would search for lower prices at other grocery stores.
Champagne also said he is reaching out to international grocers to try to convince them to set up shop in Canada for more price competition.
