All major grocery retailers have agreed to sign on to a grocery code of conduct, but whether it will result in relief for consumers, remains to be seen.
Retail analyst, advisor and speaker Bruce Winder says the code will provide greater transparency, but the factors behind grocery inflation are complex.
The good news says Winder, is, at least in the short run, that food inflation has come down a lot. “Stats Canada has called that out, even the grocers have said ‘hey, you know what? Our internal inflation number is lower.'”
Factors contributing to grocery prices range from severe weather, to geo-political upheaval, but are largely set by a small number of consumer package goods companies.
“You know, like the Nestles of the world, and the Proctor and Gambles, and they have massive market power, and they own a lot of brands. The whole industry is consolidated on the manufacturing side. And they really dictate a lot of the prices that you’re seeing happening in the market.”