Loblaw anticipates higher food prices soon due to tariffs, other pressures
Canadian Press
More from Canadian Press
July 25, 2018
July 25, 2018 5:17 PM EDT
People shop at a Loblaws store in Toronto on May 3, 2018.Nathan Denette / The Canadian Press
Canadians will likely have to pay more for certain food items soon as grocers grapple with the impact of new tariffs in an ongoing trade war and other pressures, said Loblaw Companies Ltd. CEO.
We see a very strong possibility of an accelerating retail price inflation in the market, said Galen G. Weston during a conference call with analysts Wednesday.
The company pointed to new tariffs imposed by the Canadian federal government as of July 1 on $16.6 billion of U.S. imports. The targets include a number of food products, such as yogurt, coffee, soya sauce and mayonnaise.
Its unclear what the financial impact of these tariffs will be, the company said, and the outcome will depend on how both suppliers and Canadians respond.
Higher transportation costs and a low loonie add further pressure on the grocery and pharmacy retailer, which indicated it expects to see upward pressure in prices.
We dont think its going to be meaningful, you know, super significant, Weston said, but it certainly will be higher than what it is today.
The comments came after the company released its second-quarter financial results.