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Metro Inc Warns of Persistent Inflation in Canada Amid Rise in Food Prices

Industry: Foodservice
Current: Company Performance

The inflation rate in Canada stood at 6.9% in 2022, a substantial increase over that in the previous years, according to GlobalData
The future remains unclear as Metro Inc continues to receive notices of a cost increase from suppliers for February
For the eleventh consecutive month, grocery bills increased more quickly YoY than the consumer price index in October due to an 11% increase in the cost of food purchased from retailers

Canada's Rising Consumer Price Inflation

Metro Inc., one of the largest supermarket chains in Canada, claims that food suppliers will continue to pursue an increase in prices in 2023. As prices are compared to the high inflation of 2022, Metro Inc. president and CEO Eric La Flèche stated on November 16, 2022, that the retailer expects food inflation to moderate in 2023. The inflation rate in Canada stood at 6.9% in 2022, which was significantly higher than that in the previous years, according to GlobalData.

The supermarket is still receiving cost increase notices from suppliers for February, so the future remains unclear. Inflation in food could continue for several more months as higher costs permeate the supply chain. For the eleventh consecutive month, grocery bills climbed more quickly YoY than the total consumer price index in October 2022 due to an 11% increase in the cost of food purchased from retailers.

Metro Inc.’s Total Revenue and Net Profit

As reported by Metro Inc., the total revenue and net profit of the company declined significantly in the fourth quarter of 2022 over that in the previous years.

As a result of a $60 million loss connected to the board's plan to pull out its Jean Coutu drugstore chain from the Air Miles loyalty program in 2023, Metro stated that its fourth-quarter profit decreased over that in 2021. According to Metro, its most recent quarter saw an adjusted profit of 92 cents per diluted share, up from an adjusted profit of 81 cents per share in 2021.

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