Most Canadians suspect grocery stores trying to profit off inflation

Soaring prices are forcing Canadians to cut their spending and any trust they had in grocery stores is eroding quickly amid inflation.

According to the latest data from the Angus Reid Institute, four-in-five Canadians say they have reorganized their spending and trimmed various expenses to make ends meet in recent months.

This includes tightening their discretionary budget, delaying a major purchase, driving less, scaling back travel and donations, or deferring saving for the future.

“This represents an increase from the three-quarters (74%) who said so in February,” reported Angus Reid.

But this isn’t all.

The pressures of inflation have also pushed four-in-five Canadians (78%) to believe that grocery stores are taking advantage of inflation to make more profit. Barely one in 10 think the spike in margins is due to “good management” by grocery chains.

Angus Reid Institute

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Angus Reid reports that these suspicions are aligned across demographics such as age, income, and education.

Last month, a bombshell Toronto Star investigation revealed that major Canadian grocery stores were profiting off inflation, as the increase in their prices outpaced the rate of inflation.

This included big names like Metro, Loblaws, and Empire Company Limited. The latter owns Sobey’s, IGA, FreshCo, Farm Boy, Thrifty Foods, Safeway, and Foodland.

All the chains denied doing anything of the sort, and some economists see that reflect in the math. A Globe and Mail report published this month showed that the quarterly earnings of these chains don’t suggest they were taking advantage of rising inflation.

Statistics Canada’s data for July showed that inflation slowed down, going from 8.1% in June to 7.6% in July, but that change did not result in lowered grocery prices.

“While gasoline prices declined on a monthly basis in July, prices for other non-durable goods like natural gas and groceries rose,” reads the federal statistics agency’s report.

Do you feel that grocery stores are preying on desperate Canadians, or is this just business as usual?

Let us know your thoughts in the comments.