Carney’s counter tariffs worsened affordability for Canadians: Bank of Canada
Between March and May 2025, U.S. food inflation cooled while Canada nearly tripled over the same period.
Experts say Prime Minister Mark Carney artificially drove up food prices in mid-2025 for political reasons, worsening Canada’s affordability crisis amid rising food inflation.
Earlier this week, the Bank of Canada reported that Canadian companies absorbed most of the costs from Ottawa’s counter-tariffs on U.S. goods, expecting them to be temporary.
“Tariff pass-through is significant but partial,” a Bank of Canada study said. About a quarter of counter-tariffs reached consumers, adding roughly 0.3 percentage points to inflation, which stayed near 2% in 2025.
