GST Credit to Address High Grocery Prices
Monday, January 26, 2026. Prime Minister Mark Carney announced today in Ottawa that “some” Canadians will receive a GST credit top-up to help combat grocery costs. While the additional support offers a glimmer of hope, the term ‘some’ has left many Canadians feeling uncertain, particularly given the lack of information or clear criteria on who will qualify for this rebate and who will not.
Carney mentioned that an estimated 12 million Canadians would benefit from this initiative, representing about 30% of the population. However, this hardly seems like a viable solution for the “4 in 5 Canadians who are struggling with rising food prices,” as indicated by the November 2025 Canadian Food Sentiment Index.
The same report revealed that grocery prices in Canada rose faster than the overall annual inflation rate of 2.2% that month. Nearly half of those surveyed (approximately 1,500 respondents) stated they had altered their traditional grocery shopping habits by seeking out sales and discounts. Around 23% reported using more coupons, shopping online for better prices, or opting for cheaper stores.
Carney’s Plan: The increase in the GST credit is part of a broader initiative called the “Canada Groceries and Essentials Benefit.” As part of this plan, quarterly GST payments will rise by 25% over the next five years, along with a one-time 50% top-up in June. This move comes in response to growing pressures from opposition parties concerning affordability.
Federal estimates suggest that the one-time top-up, combined with the quarterly 25% increase, could provide an additional $400 this year for a low-income single person and $800 for a couple with two children.
Reports indicate that the federal government will also announce further affordability measures today or in the coming days, including solutions to address structural issues in Canada’s food supply chain and improve market competition. Among these measures is the launch of a new National Food Security Strategy, which will introduce unit-label pricing to enable Canadians to compare products easily.
This strategy is expected to support the Competition Bureau in monitoring and enforcing competition in the market, as well as in implementing measures to enhance food security in Canada’s northern regions.
The suite of measures will also include a $20 million top-up for food banks and a $500 million fund to help food businesses expand and strengthen their supply chains.
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