This is how Canadians would spend the proposed grocery rebate
While Canada’s lately introduced grocery rebate has but to be applied, Elise Chartrand from Embrun, Ont., already is aware of what she would do with the additional cash. The 76-year-old stated she plans to deal with herself to a few of the meals objects she’s been avoiding on the grocery retailer these days, because of rising prices.
“I’ve been so hungry for watermelon and some fresh fruits,” Chartrand advised CTVNews.ca in a phone interview on March 30. If eligible for the rebate, she might obtain as a lot as $225.
“I haven’t bought fresh fish in so long, it’ll be so nice to get a big piece of halibut … That should take care of the money rebate real quick.”
Included in this yr’s federal price range, which was tabled on March 28, the grocery rebate is a one-time fee aimed toward serving to Canadians take care of the rising price of dwelling. Once a invoice implementing the measure passes in Parliament, the rebate shall be supplied by Canada’s GST/HST tax credit score system and people with low or modest incomes shall be eligible to obtain it.
Although latest knowledge reveals that Canada’s annual inflation charge dropped from 5.9 per cent in January to 5.2 per cent in February, grocery costs stay excessive throughout the nation. According to knowledge from Statistics Canada, meals costs elevated 10.6 per cent year-over-year in February.
Chartrand is one among dozens of Canadians who wrote to CTVNews.ca concerning the rising price of meals and the way they might profit from the proposed grocery rebate. Food inflation stays a rising concern amongst Canadian shoppers, with meals costs hitting their highest ranges in a long time, based on knowledge from Statistics Canada.
The federal authorities’s proposal of a grocery rebate comes at a time when the price of dwelling stays elevated throughout the nation and a few say they’re struggling to afford fundamentals corresponding to housing or lease. The quantities differ based on household standing, with a single particular person eligible for as much as $234 and {couples} with two youngsters eligible for as much as $467.
Similar to Chartrand, a number of Canadians defined that they might put this cash in direction of dearer meals objects, corresponding to meat or vegetables and fruit. Frozen meals and non-perishable objects corresponding to canned items are grocery objects many stated can even be excessive on their precedence listing, as they are often saved for longer durations of time.
Right now, the majority of Chartrand’s month-to-month grocery invoice consists of fish and meat merchandise, together with bacon and pork chops. Not solely does she get pleasure from consuming them, however she’ll incorporate these meals into varied meals, she stated. She will usually purchase bacon and pork chops in bulk and retailer them within the freezer till she wants them. The similar goes for grain merchandise corresponding to bread, one other merchandise Chartrand will usually buy from the grocery retailer. She’ll additionally purchase chocolate, she stated.
“I always have some [at home],” Chartrand stated. “But I buy the bars when they’re on sale for $1.”
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The common worth of recent or frozen fish elevated 9.8 per cent between February 2022 and February 2023, based on Statistics Canada. Within the identical timeframe, the common worth of recent fruit has risen 10.5 per cent, whereas recent greens price 13.4 per cent extra year-over-year.
Chartrand, who lives in a small neighborhood 40 kilometres southeast of Ottawa, is presently retired and depends on the assured revenue complement profit to pay for meals. While she stated the grocery rebate can be useful, it’ll doubtless solely cowl a part of one journey to the shop. Each month, Chartrand spends a minimum of $500 on groceries for herself, she stated.
“To me [the rebate] is a splurge, it won’t help me all year-round,” she stated.
CHILDREN’S SNACKS A PRIORITY FOR SINGLE MOTHER IN WATERLOO, ONT.
Even if she acquired the grocery rebate, Brooklyn Hilton from Waterloo, Ont., stated she wouldn’t change her spending habits in response. She would put the additional cash in direction of her weekly journeys to the grocery retailer, and wouldn’t purchase greater than what she wants.
“It’s not helping enough to be able to spend any more than what I can afford,” she advised CTVNews.ca in a phone interview on March 30. “Every little bit helps, but it’s still not enough.”
Hilton is a receptionist at a neighborhood retirement residence. The 30-year-old single mom stated she spends about $600 per thirty days on groceries for herself and her six-year-old daughter.
Hilton often spends most of her grocery cash on meat and fish merchandise, corresponding to hen and salmon. A big portion of her month-to-month price range additionally goes in direction of youngsters’s snacks, corresponding to Lunchables, cookies, Jell-O and apple sauce, she stated.
ONTARIO MOTHER OF THREE TO STOCK UP ON FROZEN FOODS, CANNED GOODS
Meanwhile, Lizz Lambert-Lavis from Arthur, Ont., spends as a lot as $1,400 on groceries every month, she stated, which is greater than she would spend on meals bought from shops earlier than the COVID-19 pandemic.
“We were spending maximum $300, maybe $400 every two weeks [before the pandemic] and we would have a full fridge,” the 30-year-old wrote in an e mail to CTVNews.ca on March 30. “Now it’s [bare] essentials.”
If she and her associate acquired the grocery rebate for his or her household of 5, they might fill up on a few of the objects they purchase repeatedly, Lambert-Lavis stated. These embrace canned items, corresponding to soups, and frozen meals, corresponding to greens, French fries and pizza, which they plan to retailer at residence to be used over the following few months.
Lambert-Lavis and her associate are manufacturing facility employees in a small neighborhood about 100 kilometres northwest of Toronto. The couple, together with their three youngsters aged 9, seven and 5, primarily spend their grocery cash on meat and fish merchandise, drinks and frozen meals.
QUEBEC SINGLE FATHER BUYS FRESH FRUIT IN BULK
Steven Heerelal is a single father with two youngsters, aged 10 and 6. With a median month-to-month grocery invoice of about $900, he stated even the utmost grocery rebate of $467 is barely sufficient to cowl two weeks of meals for his household of three.
“It’s not something to really be excited about it,” Heerelal advised CTVNews.ca in a phone interview on March 30.
Each month, the 44-year-old will spend about $150 on vegetables and fruit, usually buying objects corresponding to lettuce and oranges, which have seen a few of the largest annual will increase in worth. Data from Statistics Canada reveals the worth of lettuce has elevated 20.2 per cent between February 2022 and February 2023. The worth of oranges has elevated 15.1 per cent year-over-year.
Over the previous year-and-a-half, Heerelal stated he has seen a gradual rise in grocery costs.
Heerelal usually goes grocery buying as soon as each two weeks and in an effort to save lots of on meals, he’ll store at wholesale shops corresponding to Costco to purchase objects in bulk. If he receives the grocery rebate, Heerelal plans to place the cash in direction of his subsequent two weeks’ value of groceries, he stated. Even with rising meals costs, he has not shied away from spending on objects his youngsters get pleasure from.
“I’m not going to deprive my kids … I don’t think it’s fair upon them,” the Montreal resident stated, referring to objects corresponding to recent fruit and kids’s snacks. “No matter the cost, if we need it, I’ll still buy it.”
SASKATCHEWAN SENIOR CUTS DOWN ON MEAT TO SAVE MONEY
Based in Regina, Dennis William stated he retailers at three totally different grocery shops looking for the perfect offers when buying groceries for himself. William, who’s a regional supervisor for a pharmaceutical firm, retains a detailed eye on weekly flyers to see what’s on sale as nicely. Eating much less meat than he did up to now has additionally helped him save on groceries, he stated.
“I’m almost retirement age and will have to continue to really watch my food expenses each month,” the 64-year-old wrote in an e mail to CTVNews.ca on March 30.
William presently spends about $250 on groceries every month, he stated. If he receives the grocery rebate, he plans to unfold the cash out over a couple of months and wait till objects go on sale earlier than buying them in an effort to fill up.
“I won’t use it up all at once,” he advised CTVNews.ca in a phone interview on March 31.
Most of his cash goes in direction of fruits, greens and dairy merchandise, which have elevated considerably in worth at his native grocery shops over the previous few months, he stated. William, like plenty of Canadians who reached out to CTVNews.ca, stated the proposed grocery rebate doesn’t provide sufficient help to Canadians. Over the span of a yr, the one-time rebate gives the equal of an additional $39 per thirty days for a household of 4 in Canada.
“The [government] should consider giving this grocery rebate more than just the one time,” William wrote in his e mail.
Meanwhile, as a substitute of spending the cash on groceries, some stated they plan to make use of it to pay different payments, together with requirements corresponding to heating. A handful of others stated they might donate their rebate to their native meals financial institution.
WHAT DO WE KNOW ABOUT THE GROCERY REBATE?
According to phrases outlined in the federal price range, grocery rebate quantities will differ based on household standing. Some examples of how the one-time rebate will apply embrace:
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Couples with two youngsters might obtain as much as $467 -
A single particular person with no youngsters might obtain as much as $234 -
A senior might obtain as much as $225
Although the price range options hypothetical situations the place a pair making $38,000 per yr with two youngsters and a person incomes $32,000 per yr with no youngsters each acquired most rebate quantities, no particular revenue brackets are talked about as a part of the eligibility standards.
However, for the reason that grocery rebate shall be supplied by the GST/HST tax credit score mechanism, eligibility standards for this credit score might shed some gentle on who may qualify to obtain the utmost grocery rebate quantities. The GST/HST profit decreases as revenue rises, and ends totally as soon as revenue reaches $50,000 or extra for a person with no youngsters, $55,000 or extra for a pair with no youngsters, and $65,000 or extra for a pair with 4 youngsters.
Based on the newest Canada’s Food Price Report, launched yearly by the Agri-Food Analytics Lab at Dalhousie University, it prices roughly $16,288 per yr to feed a household of 4 in Canada. This represents a rise of barely greater than $1,000 in comparison with 2022. Items corresponding to greens, dairy merchandise and meat are anticipated to see the biggest will increase in worth, the report stated.
GROCERY STORES ACCUSED OF CONTRIBUTING TO RISING PRICES
Inflation associated to meals offered in shops has outpaced general inflation since late 2021, based on Statistics Canada. The difficulty of inflated grocery costs is such a priority that it has grow to be the main target of a parliamentary examine led by a committee of MPs.
At a listening to final month, lawmakers interrogated the executives of Canada’s main grocery chains, which face accusations that their shops are answerable for meals inflation. In latest months, these chains have additionally been criticized for posting income as grocery costs rise. Metro Inc., for instance, reported a double-digit improve in income in January, in comparison with the identical time one yr in the past. Additionally, Loblaw Cos. Ltd. stated it expects to see income rise quicker than gross sales in 2023.
But whereas dealing with the parliamentary committee in March, the CEOs and presidents of Loblaw Cos. Ltd., Metro Inc. and Empire Co. Ltd. every denied that they have been answerable for rising meals costs. Instead, they argued meals inflation is a world difficulty and their margins on food-related income have been low.
According to Gary Sands, senior vice-president of public coverage with the Canadian Federation of Independent Grocers, enter prices from suppliers and different elements of the grocery provide chain are contributing to rising meals costs.
Natural disasters corresponding to flooding in British Columbia and droughts in California have additionally restricted food-related imports and manufacturing, contributing to cost will increase as nicely. As a end result, consultants say grocery costs should not prone to drop over the following few months.
With information from CTVNews.ca’s Senior Digital Parliamentary Reporter Rachel Aiello and writers Megan DeLaire and Tom Yun
