Prime Minister Carney announces new measures to make groceries and other essentials more affordable for Canadians

January 26, 2026 Ottawa, Ontario

The global landscape is rapidly changing, leaving economies, businesses, and workers under a cloud of uncertainty. In response, Canada’s new government is focused on what we can control: building a stronger economy to make life more affordable for Canadians. To that end, we are securing new trade and investment partnerships abroad and building our strength at home – to create good career opportunities with higher wages for Canadians.

Our plan is moving Canada’s economy from reliance to resilience, though some of the biggest long-term payoffs of this transformation will take time to be felt. To ensure Canadians have the support they need right now, the government has introduced a series of new measures to bring down costs – including cutting taxes for 22 million Canadians, supercharging homebuilding, and protecting and expanding vital social programs.

To build on that progress, the Prime Minister, Mark Carney, today introduced new measures to make groceries and other essentials more affordable. To bring down your costs, Canada’s new government is:

1. Putting more money back in Canadians’ pockets

• The government is introducing the new Canada Groceries and Essentials Benefit – formerly the Goods and Services Tax (GST) Credit. We are increasing its amount by 25% for five years beginning in July 2026.
• In addition to that, we are providing a one-time payment, equivalent to a 50% increase this year.
  • Combined, this means that a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years; and a single person will receive up to $950 this year, and about $700 a year for the next four years.
  • The new Canada Groceries and Essentials Benefit will provide additional, significant support for more than 12 million Canadians.

2. Tackling food insecurity, supporting producers, and strengthening supply chains

• The government is setting aside $500 million from the Strategic Response Fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line.
• For the same purpose, the government will create a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and the organisations that support them.
• To lower the cost of food production, we are introducing immediate expensing for greenhouse buildings. This allows producers to fully write off greenhouses acquired on or after November 4, 2025, and that become available for use before 2030. This measure supports increased domestic supply and investment in food production over the medium-term.
• To ease immediate pressures with food banks, the government is providing $20 million to the Local Food Infrastructure Fund. This supports food banks and other national, regional, and local organisations to deliver more nutritious food to families in need.
• To tackle the root causes of food insecurity, we are developing a National Food Security Strategy – one that strengthens domestic food production and improves access to affordable, nutritious food.
• This strategy will also include measures to implement unit price labelling and support the work of the Competition Bureau in monitoring and enforcing competition in the market, including food supply chains.

Our government is focused on building a stronger economy – to create more career opportunities and higher wages. In parallel, we are bringing down costs to make life more affordable. That’s how we’ll empower more Canadians with greater certainty, security, and prosperity – now, and into the future.

Quotes

“One of the best things about Canada is that you don’t have to be born rich to succeed. To protect that fundamental value, we are building a stronger economy that benefits everyone – creating thousands of new career opportunities with better wages. We’re also bringing in new measures to lower costs and make sure Canadians have the support they need now. We’re building Canada strong, because we’re strongest when we look after each other and when we ensure everyone has the chance to get ahead.”

The Rt. Hon. Mark Carney, Prime Minister of Canada

“Our government is taking direct action to make life more affordable for Canadians. We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition, and supply chains to build a more resilient, affordable economy for the future.”

The Hon. François-Philippe Champagne, Minister of Finance and National Revenue

“Many Canadians have been feeling the pressure of rising costs for far too long, and our government is focused on delivering support where it’s needed most. These measures will support Canada’s agriculture sector and strengthen the systems Canadians rely on every day. By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system.”

The Hon. Heath MacDonald, Minister of Agriculture and Agri-Food

“At a time when global supply chain disruptions are driving up prices, our government is stepping in. By committing $500 million through the Strategic Response Fund to help Canadian businesses manage rising costs, and putting a renewed focus on competition in the food supply chain, we are taking decisive action to bring down grocery prices. Strengthening supply chains and restoring real competition means more fairness at the checkout and real relief for Canadian families.”

The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

Quick facts

• Today’s announcement builds on the following measures to lower costs for Canadians and protect essential programs, including:
  • Cutting taxes for 22 million middle-class Canadians by lowering the first marginal personal income tax rate from 15% to 14% as of July 1, 2025, providing tax relief of up to $420 a year per person, or up to $840 a year for two-income families.
  • Eliminating the Goods and Services Tax (GST) for first-time homebuyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million, to immediately make the goal of home ownership a reality for more Canadians, especially young families.
  • Cancelling the federal consumer carbon tax effective April 1, 2025, directly helping Canadians save money at the pump. The government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of that date. This has helped reduce gas prices in most provinces and territories by up to 18 cents per litre in comparison to 2024-25, lowering headline inflation.
• Budget 2025 also outlined concrete action to ensure Canadians receive the support they deserve, including targeted measures to strengthen food security and household affordability:
  • Making the National School Food Program permanent, providing school meals for up to 400,000 children each year, saving participating families with two children in school an estimated $800 annually on groceries.
  • Introducing Automatic Federal Benefits, starting in the 2026 tax year, to ensure up to 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year, including the Canada Groceries and Essentials Benefit and the Canada Child Benefit.
  • Lowering costs and strengthening competition in essential services, including ambitious pro-competition measures in the telecom and financial sectors to reduce prices, make it easier for Canadians to switch providers, andlower banking and service fees.
  • More information on Budget 2025 measures to tackle affordability is available here.