Carney announces GST rebate boost to counter high cost of groceries
By Canadian Press on January 26, 2026.
OTTAWA — Prime Minister Mark Carney is announcing a 25 per cent hike to the GST credit to help lower-income consumers deal with the high cost of groceries across the country.
Branded as the “Canada Groceries and Essentials Benefit,” the boost will be temporary, starting this year and lasting for five years.
The federal government will also issue a one-time payment this year worth 50 per cent of the credit.
Carney is making the announcement at an Ottawa grocery store as MPs returned to the House of Commons after a winter break.
The prime minister says the cost of essentials has been “too high for too long” and many Canadians are feeling daily financial pressure.
Carney attributes the high prices to the after-effects of the pandemic on the economy, supply chain shocks caused by U.S. President Donald Trump’s global trade war and other factors, such as climate change.
This report by The Canadian Press was first published Jan. 26, 2026.
Kyle Duggan and Craig Lord, The Canadian Press
11-10
These credits and payments to low income families is all fine and good but does nothing to reduce cost of groceries. In fact it will encourage the majors to keep their prices high and likely increase them as greed rules. I doubt the high prices are solely caused by the pandemic, tariffs or climate change. I suggest increasing profits and return to investors has a major impact.