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Price controls on groceries might be the solution to food inflation

Canadian grocery prices have been a cause for concern as they continue to rise, affecting families trying to manage their budgets. Late last year, Loblaws (TSX: L), the country's largest grocer, announced a temporary price freeze on over 1,500 items in its No Name line.

But it was a temporary measure and limited to one company. To address the issue effectively, Vass Bednar, founder of Regs to Riches and a senior fellow at CIGI, and the executive director of McMaster University’s master of public policy in digital society program, suggests in an op-ed published on The Globe and Mail that the government should implement mandatory price controls across the entire grocery sector.

Bednar points out that price controls have been used in other countries with success. France introduced a temporary "anti-inflation" basket of food items with the lowest possible prices, which motivated voluntary price freezes from various retailers. Greece passed a law requiring stores to offer lower prices on 50 basic goods, including items for babies and pets. The Greek government even subsidized food expenses for its citizens to alleviate the burden of rising prices.

You can read more on the matter here.

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