Blaming Conservatives for a Decade of Liberal Grocery Pain

Prime Minister points fingers at old “obstructionism” for weak loonie and sky-high food prices, while Canada tops the G7 in food inflation and the real culprits remain homegrown

Mark Carney recently stood in the House of Commons and pointed the finger squarely at the Conservatives, claiming their past “obstructionism” weakened the Canadian dollar and drove up food prices. He even referenced a TD Bank analysis to argue that opposition roadblocks before his government took power somehow caused the loonie’s dip, which then rippled into higher grocery bills. It is a tidy story for deflecting blame, but it falls apart pretty quickly under scrutiny.

The Canadian dollar sits around 0.73 USD (or roughly 1.37 CAD per USD) in early February 2026. That is weak, no doubt, but the big slide happened mostly in 2024 and early 2025 due to global pressures like U.S. policy shifts, trade tensions, and commodity swings. Tying a sustained currency issue to some pre-Carney parliamentary drama feels like a convenient stretch. Short-term fluctuations do not explain years of pain at the checkout.

Food inflation tells the harsher truth. Statistics Canada shows food prices jumped 6.2 percent year-over-year in December 2025, with grocery store food up 5.0 percent and restaurant meals surging 8.5 percent. That puts Canada at the top of the G7 for food inflation, far ahead of the United States at about 3.1 percent, the United Kingdom at 4.2 percent, and continental Europe hovering below 3 percent. Experts like those at Dalhousie University’s Agri-Food Analytics Lab have dubbed Canada the “food inflation capital of the G7.” Specific staples hurt: coffee up around 31 percent, beef up 17 percent, and sweets climbing too.

Sure, a weaker dollar makes imported items pricier, and the Bank of Canada notes that import costs, shipping, and some global factors explain part of the surge (about 2.7 percentage points of non-fruit-and-veg food inflation in 2025). But most everyday groceries, from bread and milk to beef and dairy, are produced domestically. Exchange rates only go so far in explaining why Canada stands out so sharply from peers. Domestic issues play a big role: regulatory burdens, carbon pricing effects rippling through supply chains, concentrated grocery sectors, and lingering supply disruptions from weather or policy.

After more than a decade of Liberal rule (including the transition to Carney), food bank usage has soared, and families face an extra $800 to $1,000 annually on groceries. Tax credits and rebates offer marginal help, but they dodge the root causes. Conservatives have called this a “made-in-Canada” crisis, and the numbers back that up: if global excuses held fully, every G7 country would look the same.

Carney’s blame game looks like another evasion. Canadians see the receipt every week, and it does not match the “it’s the old opposition’s fault” line. Real relief would come from tackling homegrown costs, like easing hidden taxes on food production and boosting domestic supply, rather than recycling tired accusations. Until then, the grocery pain keeps hitting hardest right here at home.

BACKGROUNDER

Canada’s surge is driven by a mix of factors: a weaker Canadian dollar boosting import costs (e.g., coffee up ~30%, beef ~17%), global supply pressures, and domestic issues like grocery sector dynamics. Bank of Canada research attributes much of the 2025 acceleration to imported goods and shipping, though critics note many staples are domestic, so exchange rates explain only part of it.In contrast:

• European countries (Germany, France, Italy) benefit from stronger currencies and more moderated energy/food supply chains post-2022 peaks.
• The U.S. has seen steadier cooling, with food inflation around half Canada’s level.
• Japan’s high rate ties to its own import dependencies and yen dynamics.

Overall G7 headline inflation has stabilized or declined (OECD data shows OECD-wide at ~3.9% in November 2025), but food remains a persistent pain point, especially in Canada where it’s outpacing broader inflation and hitting household budgets hardest. January 2026 figures (emerging) suggest Canada’s rate may stay elevated or rise further. This comparison highlights Canada’s unique affordability challenges in the group—grocery bills feel brutal relative to allies, fueling political debates over domestic policies vs. global excuses.