Prime Minister Mark Carney will announce a new fiscal package on Monday, the Canada Groceries and Essentials Benefit, aimed at easing food inflation pressures. The policy centers on a permanent 25% boost to quarterly GST credit payments for five years, reaching an estimated 12 million Canadians.

A one-time 50% top-up this June provides immediate relief. A single low-income person could receive an extra $400 this year, while a couple with two children might get $800. The move responds to political pressure as grocery prices outpace headline inflation, prompting calls for structural market interventions.

Beyond direct transfers, Ottawa intends to address supply chain rigidities and signal a push for greater competition in the concentrated retail sector. Following the Ottawa announcement, Carney is scheduled to meet with Ontario Premier Doug Ford in Toronto to discuss broader economic measures.