Prime Minister Mark Carney is announcing a 25 per cent hike to the GST credit to help lower-income consumers deal with the high cost of groceries across the country.

Branded as the “Canada Groceries and Essentials Benefit,” the boost will be temporary, starting this year and lasting for five years.

The federal government will also issue a one-time payment this year worth 50 per cent of the credit.

Carney is making the announcement at an Ottawa grocery store as MPs returned to the House of Commons after a winter break.

The prime minister says the cost of essentials has been "too high for too long" and many Canadians are feeling daily financial pressure.

Carney attributes the high prices to the after-effects of the pandemic on the economy, supply chain shocks caused by U.S. President Donald Trump’s global trade war and other factors, such as climate change.

This report by The Canadian Press was first published Jan. 26, 2026.