Thursday, October 20, 2022

Shigella outbreak spreading through Edmonton’s homeless population: ‘We’ve got 3rd-world conditions’

Karen Bartko - Yesterday - Global News

A person sleeping outside the Hope Mission homeless shelter in central Edmonton on June 13, 2022.© 

An infectious disease outbreak in Edmonton's inner city has a prominent local doctor calling for more to be done to get homeless people into stable housing.

"Shigella is an infectious disease that we see in third-world countries or after earthquakes, disasters or floods," said Dr. Louis Francescutti, a University of Alberta public health professor and emergency physician at the Royal Alexandra Hospital and Northeast Community Health Centre.

"We've got third-world medical conditions in the middle of Edmonton in 2022. Totally unacceptable."

LISTEN: Dr. Louis Francescutti speaks with Shaye Ganam, Oct. 20, 2022.

Shigella is an acute infectious disease that's commonly associated with diarrhea, as well as fever, nausea and stomach cramps. A strain of the bacteria causes dysentery.

Alberta Health Services said it spreads when someone comes into contact with fecal matter from an infected person and also by eating food contaminated with the bacteria.

Francescutti said shigella is commonly transmitted from person to person when people don't have access to good personal hygiene.


"So in other words, they're not able to shower, they're not able to go to the bathroom and wash their hands appropriately afterwards," he said.

AHS said a cluster of shigella cases was first identified amongst the inner-city population back in August.

To date, the health authority has identified 87 cases — 64 of which required hospitalization. The first case became ill on Aug. 17. So far, AHS said no deaths have been reported.

Francescutti said infected people would typically have persistent watery and possibly bloody diarrhea that would keep them at home and close to a bathroom.

"What we're seeing amongst a population that's houseless right now is the inability to do those simple things," he said.

Marliss Taylor, director of health services at Boyle Street Community Services, described the disease as being similar to a never-ending bout of food poisoning.

"Not having any place to go and no support, all of that would make it absolutely horrendous, and I think that's what we're seeing for some of our community members," she said.

The disease can cause severe illness, resulting in hospitalization.

"For some of them, they're ending up in the intensive care unit," Francescutti said.

"Once they have the infection, their bowel lining becomes weakened and leaky and then bacterial products get into their bloodstream — so they develop septic shock."

The disease can result in serious symptoms, Francescutti said, such as dehydration causing potassium, sodium and electrolyte imbalances that can affect heart and kidney function.

He said in the past week, he's had four patients with dangerously low potassium levels.

"They could even lose enough blood from the bloody diarrhea that their haemoglobin is impacted. They can develop chest pain, shortness of breath. So the list goes on."

Video: Affordability, health issues continue to be barriers for homeless

Francescutti said he has never seen a situation like this in his 30-plus years as a physician and if the outbreak isn't brought under control, it will get worse as we head into winter.

"It's going to tie up an enormous amount of health-care resources at great expense when some basic public health measures could prevent this from happening."

Taylor has been at Boyle Street for 27 years and said she has never seen a shigella outbreak.

"We have maybe moments of some food poisoning or some norovirus that may happen," she said.

"But this ongoing outbreak is very new and very difficult."

AHS said the majority of the cases so far are among the houseless population so the risk to the general public remains low, but Francescutti refutes that.

"Anybody can get shigella," he said, explaining it's as simple as touching a doorknob and then your face.

Francescutti said while most citizens who have a home and a family doctor can get the illness under control, someone who is on the street is probably also dealing with other health challenges that weaken the immune system or are mentally ill and not able to look after themselves.

"Unchecked, what could end up happening is they can end up in ICU and they can end up dying from an infectious disease in 2022 — which is crazy when you stop and think about it."

Read more:
Health advocates want Alberta to spend more on injury, disease prevention

AHS said it has reached out to physicians, inner-city shelters and partners to make them aware of the outbreak and has provided advice to getting it under control.

The health-care provider said it is leading a task force with the city, Alberta Health, Community and Social Services, Edmonton area shelters and other partner organizations to share resources and stop the spread.

But Francescutti said the real solution should involve homeless people getting off the streets and into affordable and supportive housing.

"We need to be able to give people a place where they can have a life that's quite similar to the life that you and I have: their own bathroom, their own shower, their own ability to keep themselves clean and stop spreading this infection."

Tim Pasma, manager of homeless programs at the Hope Mission, said the organization has been aware of the disease for a while now and is seeing spread amongst people living in homeless encampments.

Read more:
Edmonton seeing 25% increase in encampment complaints over last year

His organization has been doing what it can to prevent spread inside the shelter, Pasma said, explaining the focus has been on hygiene practices and increased deep cleans of the building.

"As we see more people come inside through the winter and the higher number of congregate spaces, we're going to want to make sure that we have everything in place to mitigate spread once people are closer together," Pasma said.

AHS is reminding people proper hand hygiene helps to prevent the spread of many illnesses, including shigella.

Read more:
‘Cluster’ of illness under investigation at Edmonton-area school
HOMOPHOBE USES ISLAMAPHOBIC TROPE
Severed pig's head left on Pride crosswalk at school in central Alberta

Yesterday

SPRUCE GROVE, Alta. — RCMP say a severed pig's head was deliberately placed in the centre of the rainbow Pride sidewalk at a school in central Alberta.



Police say they are investigating it as a possible hate crime that targeted Graminia School in Spruce Grove, Alta., which has a gay-straight alliance club.

The head was discovered on Sunday morning and RCMP say its placement in the centre of the crosswalk appears to have been intentional and designed to disturb students, staff and parents.

RCMP believe the pig was domesticated and the head was severed with a bladed instrument.

Officers are seeking any information pertaining to recently missing or mutilated pigs, and are asking butchers and meat packers who recently sold, or had a pig's head stolen, to contact Parkland RCMP.

Spruce Grove is about 34 kilometres west of Edmonton.

This report by The Canadian Press was first published Oct. 19, 2022.

The Canadian Press
NO BUMP SMITH
Smith and the UCP lag Notley and the NDP, new poll suggests

Elise von Scheel - Yesterday 2:00 p.m.

Alberta's governing United Conservative Party (UCP) and its newly minted leader are lagging their main rivals in both vote intention and approval rating, according to new research from a communications and public relations firm.


Alberta Premier Danielle Smith's previous social media habits have increasingly come under scrutiny since she was sworn in as premier on Oct. 11. On Tuesday, she apologized for her previous comments about Russia's invasion of Ukraine.
© Jason Franson/The Canadian Press

Navigator Ltd. released polling done in the first days of Danielle Smith's tenure as UCP leader but before her first week as premier really kicked off.

The data, collected Oct. 7-11, shows that the Albertans surveyed preferred Rachel Notley's New Democrats to Smith's party — 53 per cent of the current vote intention to 38 per cent, respectively.

The Alberta Party was a distant third, barely on the board with four per cent. Other parties made up five per cent collectively. Another poll conducted in a similar time frame by Leger placed support at 44 per cent for the NDP and 42 for the UCP.
No honeymoon period

The research indicates the UCP hasn't seen a surge in support following the exit of Jason Kenney. Smith also isn't enjoying any honeymoon period thus far. The poll showed only 22 per cent of people had a positive impression of her, compared with 47 per cent for Notley.

"In many ways, Notley and the NDP are beneficiaries to some of what's going on and transpired in the last year with the UCP, our polling has clearly indicated that the infighting within the caucus of the UCP really had a significant drag on support for the party," said Jason Hatcher, a managing principal with Navigator.

"I think if that's something that she can get the party singing from the same song book and demonstrate unity, I think that will really help that number."

Of the 1,002 people surveyed, 82 per cent were aware of the Sovereignty Act — Smith's proposal that could see Alberta refuse to adhere to any federal legislation or court rulings it deemed to be against provincial interests — but half were either strongly or somewhat opposed. Support was stronger in rural areas and lowest in Edmonton, with Calgary almost exactly in between.

It also found people said they trusted Notley much more when it came to economic leadership abilities. That's a departure from political trends in Alberta that typically see a strong economic message associated more with the UCP.

A University of Calgary professor said the two parties seem to be going in opposite directions.

"What we saw was an upward trend in assessments of the competence of the NDP to handle a whole bunch of issues, most notably health care, but also the economy. And a smaller but still present downward trend in assessment of competence of the UCP. So that, I think, is good news for the NDP and bad news for the UCP," said Lisa Young, a political scientist at the university.

Still very fluid

Young and Hatcher said that with seven months until the next provincial election, approval ratings and vote intention are still very fluid. This round of polling was completed before the premier clarified her remarks about people who were not vaccinated being the most discriminated against group in her lifetime and before controversy over past comments she'd made about Russia's war in Ukraine.

Health care and affordability ranked as the top two issues among the respondents, followed by standing up against the federal government, other economic issues like job creation, and climate change.

"This is basically a two-horse race, and it's going to be between two leaders and two big personalities, frankly, who are well known in the province. Seven months is a long runway," Hatcher said.

The survey of Albertans 18 and older and has a margin of error of plus or minus 3.5 per cent, 19 times out of 20.

HEY SMITH;
Alberta COVID hospitalizations ‘going to get worse before getting better’: ER doc
Adam Toy - Yesterday 


AHS worker holding hand of patient.© Credit: Heather Patterson

COVID-19 cases in Alberta hospitals continue to mount as the winter months get closer.

In the weekly pandemic figures report released Wednesday, 56 more COVID cases were in hospital on Oct. 17 from the week before, bringing the total to 1070. ICU cases edged up to 33 from 31 last week.

According to AHS figures, ICU capacity was at 84 per cent provincewide on Wednesday.

There are more COVID-19 cases in hospital this year than the same time last year, but with fewer ICU patients.

On Oct. 17, 2021, there were 218 COVID patients in ICU and 772 in non-ICU spaces, a total of 990. A year later, 33 were in ICU and 1037 in non-ICU spaces for a total of 1070 – 80 more than a year ago.

Dr. Shazma Mithani, an Edmonton-based emergency physician, expected things to get worse in hospitals as the cold weather sets in and respiratory viruses spread through more of the community.

“This is just the beginning,” Mithani told Shaye Ganam on Tuesday.

"This is still going to get worse over the next several months before it gets better.

“We're just at the cusp of influenza season. We're seeing our COVID numbers go up as well. And so we're going to see impacts of that as added pressure to the already existing pressure on the hospitals right now.”

Mithani said in a typical calendar year, the summer months allow for reprieve in Alberta emergency departments.

The summers of 2020 and 2021 saw troughs in hospitalized COVID patients. On July 24, 2021, a total of 70 COVID hospitalizations marked that summer’s low point. But 2022 bucked that trend, with COVID hospitalizations reaching a low point of 543 on July 9.


There haven’t been fewer than 400 COVID-19 patients in hospital in all of 2022.

The Health Quality Council of Alberta, which publicly tracks hospital occupancy, doesn’t have data past March 2022. At the latest data point, the University of Alberta Hospital, Peter Lougheed Centre, South Health Campus and Queen Elizabeth II hospital were at above 100 per cent capacity.

Read more:

Mithani said capacity in terms of staff available to treat patients is “completely maxed.”

“We're trying to be as innovative as possible, trying to be as resourceful as possible, because we don't want to have any patients have a negative outcome from the long wait times in the current situation,” Mithani said.

The E.R. doctor said acuity scores – a measure of how sick a patient is – have been climbing for the past five years.

“What that means for us in the E.R. is that patients are sicker, which means they're more likely to get admitted. And if they're more likely to get admitted, they stay in that bed for longer, which means that we can't use that bed to see people,” she said of one more complicating factor for the health care system.

Read more:

Mithani recognized access to family doctors and primary health care can help take care of health issues before they become an emergency. But more Albertans have reported they’ve been unable to get access to a family doctor.

“The E.R. sees everybody, right? We will, and we have to, and we should. However, if there are things that can be managed by a family doctor, of course, that's ideal.”

She recommended calling a family doctor or 811 to get advice on whether to come to hospital.

“If you're not vaccinated for influenza and COVID-19 already, please do that. That will prevent you from getting sick and also have a severe illness,” Mithani added.

The province marked 32 new deaths attributed to COVID-19 in the past week, bringing the pandemic death toll to 4,983.

One of those deaths was of an Albertan in the 30- to 39-year-old age group, another was in the 40- to 49-year-old cohort and another of the 50- to 59-year-old age group. The 80+ age group saw 16 deaths added from last week, and eight in the 70- to 79-year-old cohort.

If the COVID deaths rate continues unabated, Alberta will surpass 5,000 deaths by the end of this week.

The seven-day average positivity rate notched down slightly province-wide to 18.45 per cent.

This year, PCR tests in Alberta have been limited to people with clinical risks of severe outcomes and people who live and/or work in high-risk settings.
Scientists discover source of one of the rarest meteorites to fall on Earth

By Nilima Marshall - 2h ago


Ivuna meteorite© Provided by Evening Standard

UK scientists believe they have identified the source of one of the rarest meteorites to ever fall on Earth.

The Ivuna meteorite landed in Tanzania in December 1938 and was subsequently split into a number of samples – one of which is housed at the Natural History Museum (NHM) in London.

Based on an analysis of an asteroid known as Ryugu, experts believe the Ivuna rock may have originated from the edge of the solar system.

The NHM team said, its findings, published in the journal Science Advances, could unlock more answers about the early history of the solar system and shed more light on how life came to exist on Earth.

Professor Sara Russell, a senior research lead at the museum, who is a co-author on the paper, told the PA news agency: “It is a really exciting discovery for me because it shows that meteorites in our museum and in collections around the world, might actually sample most of the solid solar system, from the innermost rocky part to its furthest outer reaches.

“We can use them to learn more about our origins and about all our companion planets.”

The Ivuna falls into a category of extremely rare meteorites known as CI chondrites.

These are stony carbon-containing meteorites that retain the original primitive chemistry from the formation of the solar system more than four billion years ago.

Related video: Asteroid-exploring spacecraft passes over Earth
Duration 1:16

They have been known to contain water – one of the key ingredients to life.

Professor Russell said that apart from Ivuna, only four other known CI-type meteorites exist on Earth: Orgueil and Alais, which both fell in France, Tonk which fell in India, and the tiny Revelstoke meteorite which fell in Canada.

She said: “It’s only within the last decade we’ve begun to appreciate just how far objects in the solar system can move towards and away from the sun.”

For the study, the team examined Ryugu samples, which were remotely brought back to Earth in 2020 by Japanese spacecraft Hayabusa2.

It is thought that Ryugu, which is classed as a near-Earth object, was born in the outer solar system more than four billion years ago and broke away from a larger body, migrating towards Earth.

It is now located between the Earth and Mars and orbits the sun.

Ryugu belongs to a class of asteroids called carbonaceous, or C-type, asteroids.

C-type asteroids are rich in water, carbon and organic compounds from when the solar system formed.

The researchers said both Ryugu and the CI chondrites originate from the same region of space – the outskirts of the solar system – and cannot rule out the possibility that they could even share the same parent body.

Professor Russell said: “By comparing the forms of iron in both the asteroids and meteorites, we learnt that Ryugu is a remarkably close match to CI chondrites.”

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'Careless and reckless choices': Rash of Fort McMurray wildfires caused by human carelessness

Vincent McDermott - 


Firefighters in the Fort McMurray Wood Buffalo region have been fighting five wildfires since Tuesday, all of which have been caused by people.


The sun sets over the Snye in Fort McMurray on Tuesday July 27, 2016. Robert Murray/Fort McMurray Today© Provided by Edmonton Journal

Greg Bennett, a spokesperson for the Regional Municipality of Wood Buffalo, said Thursday the investigations are ongoing. One fire near Tower Road appears to have been caused by an unattended campfire. Smoke bombs were also hanging in a tree near the scene.

Preliminary reports for the other fires indicate that:

-Two wildfires in the Janvier area were human caused.

-A fire on a utility road northwest of the Parsons Creek Overpass was caused by people.

-A fire in the treeline behind Morgan Heights Trailer Park off McKinley Road in Timberlea was caused by people. The source of the fire has been found.

All of the fires are classified as held, including the Timberlea fire which is roughly 2.5 hectares. Sprinkler systems and emergency crews have also been deployed.

Regional Fire Chief Jody Butz said the fires have spread because most foliage has fallen and weather conditions in the region are dry. He asked hikers, people using off-highway vehicles (OHV) and anyone else using the trail systems or spending time in the boreal forest to be careful.

“Careless and reckless choices with campfires, smokers’ materials and debris in OHVs are leading causes of human-caused fires in the forest area. OHV use is always restricted in Fort McMurray and keeping your OHV clear of debris regularly can cut down on these risks,” he said. “Human-caused fires strain resources and create unnecessary risk to the community.”

Since January 1, there have been 111 wildfires in the Fort McMurray Forest Area. A total of 125,401 hectares have been burned.

There are currently 31 active wildfires in the Fort McMurray Forest Area, 17 are classified as being held and 14 are classified as under control. There are 59 active wildfires across Alberta.

vmcdermott@postmedia.com

CRIMINAL CAPITALI$M THE FED

Bostic reveals trading missteps, adding to

 U.S. Fed ethics scandal

Another top Federal Reserve official revealed he violated central bank policy on financial transactions, leading Chair Jerome Powell to open a probe in the latest chapter of a broader Fed ethics scandal.

Atlanta Fed President Raphael Bostic said Friday that his asset managers made trades during restricted periods and transactions had been inadvertently omitted from his financial disclosures. The regional bank also posted the corrected disclosures -- going back to 2017, the year he became chief.

The development comes at a time when the central bank can ill afford distractions. It’s battling inflation at a 40-year high by aggressively raising interest rates while hoping to avoid a painful recession.

Bostic’s revelations reopen a damaging ethics scandal that erupted last year and led Powell to overhaul trading rules to support public confidence in the Fed, in an acknowledgment that the previous oversight lacked rigor.

Bostic said Friday he wasn’t aware of the specific trades or timing of the transactions, which were made by a third-party manager in accounts where he did not have ability to direct trades.


“I take very seriously my responsibility to be transparent about my financial transactions and to avoid any actual or perceived conflicts of interest,” Bostic, 56, said in the statement.

The Atlanta Fed’s board of directors expressed its support for Bostic. “My board colleagues and I have confidence in President Bostic’s explanation that he did not seek to profit from any FOMC-related knowledge,” board chair Elizabeth Smith said.

 

EARLY RETIREMENTS

The ethics scandal’s earlier fallout saw two regional Fed presidents announce their early retirements following revelations about their unusual trading activity in 2020 as the central bank battled Covid-19, and placed Powell himself under scrutiny, alongside then-Vice Chair Richard Clarida. 

Bostic explained in a seven-page statement Friday that he misunderstood the trading restrictions, and he sought to avoid conflicts of interest by holding his assets in managed accounts that he could not direct.

He said that he had “come to learn, however, that while I did not have the ability to direct trades in these accounts, the transactions directed by third parties, not just the assets themselves, should have been listed on my annual financial disclosure forms.” That included what he said were a “limited number” of trades that took place during Federal Open Market Committee blackout periods or financial stress periods.

A Fed spokeswoman said Powell has asked the Board of Governors inspector general, the central bank’s internal watchdog, to review Bostic’s disclosures and “we look forward to the results of their work and will accept and take appropriate actions based on their findings.”

Comments from Fed Board ethics officials included in Bostic’s corrected 2021 financial disclosures noted that:

  • Bostic omitted a substantial number of securities transactions from the disclosures that he previously filed
  • He held more than US$50,000 of Treasury funds in violation of then-applicable Board policy
  • Bostic had extensive trading activity during FOMC trading blackout periods and during March-April 2020, which he explains was carried out by third-party financial advisors with investment discretion within managed account

Bostic said his assets are no longer in unified managed accounts and no “automatic” investments can occur without his approval. He also divested from assets that are no longer allowed under new trading rules that went into effect for senior Fed officials in May.

 

TRADING SCANDAL

The Fed overhauled its ethics rules in 2021 after revelations about unusual trading activity during 2020 by several senior officials as the central bank slashed interest rates to nearly zero and unleashed emergency lending programs to protect the economy as the pandemic spread.

Then-Dallas Fed President Robert Kaplan and his Boston colleague Eric Rosengren both announced their early retirement following the revelations, with Rosengren citing ill health. Clarida also came under scrutiny for his transaction on the eve of a Fed statement signaling it was getting ready to calm market panic. He resigned Jan. 14, 2022, ahead of the expiration of his term as governor on Jan. 31.

Regional Fed presidents file annual financial disclosures, and it is now routine for those banks to make them publicly accessible.

The Fed IG has separately looked into transactions by Powell’s family trust and by Clarida, and closed the investigation in July saying it didn’t find evidence of wrongdoing. Probes of senior reserve bank officials are ongoing, the IG said at the time.

The IG’s probe has been criticized as incomplete by Senator Elizabeth Warren, a Massachusetts Democrat.

PRICE GOUGING DUE TO FALLING RATE OF PROFIT

Nestle CEO warns shoppers to brace for more price increases

Nestle SA Chief Executive Officer Mark Schneider said inflation will remain an issue in 2023 even after the world's largest food maker pushes through the biggest price increases in decades this year.

“This is a situation no one wished for,” CEO Mark Schneider said in an interview with Bloomberg Television. “We are seeing huge upward pressure on energy, some of the agricultural commodities and also transportation costs.”

The volume of goods sold eased by 0.2 per cent in the third quarter as Nestle raised prices 9.5 per cent. Until now, consumers have been willing to absorb higher costs despite a spike in inflation that's squeezed household budgets and lifted manufacturers' raw material costs. 

Nestle hasn't passed on all its higher input costs onto consumers, the CEO said. The impact of higher energy prices in Europe also risks stifling demand for Nestle as cash-strapped consumers switch to cheaper products. Wages will add to cost pressure next year with negotiations in most countries to take place by the first quarter, Schneider said. 

The maker of Nespresso coffee pods and Purina pet food said for 2022 it expects full-year revenue growth of about 8 per cent, the top end of its previous forecast range. The group confirmed its 17 per cent operating margin target for the year, which would be the second consecutive annual decline.

Concerns have been rising that makers of branded packaged goods may start to lose market share to private label producers. Inflation is soaring globally, with the rate in the euro-area hitting a record 10 per cent last month. In the U.K., prices for food and non-alcoholic drinks rose 14.6 per cent in the year to September, data showed on Wednesday. 

Though the quarterly drop in volume suggests the strategy of increasing prices may eventually bump up against a limit, analysts weren't overly alarmed.

There's “no sign of imminent consumer doom yet,” Bruno Monteyne, analyst at Bernstein said in a note. “The company keeps doing what it always does: strong growth, diversified strength, and no surprises.”

The stock was little changed at 11:19 a.m. in Zurich.

While Purina and Nescafe led growth, dairy, ice cream, prepared meals and cooking aids showed signs of softening demand. At Nespresso, volumes declined and European sales dropped after a strong 2021, when growth was in double digits.  

Nestle said Wednesday it plans to buy the Seattle's Best Coffee brand from Starbucks Corp. for an undisclosed price, expanding a four-year alliance. 





  • 18% of businesses affected by cybersecurity incidents last year: StatCan

A new Statistics Canada report says 18 per cent of Canadian businesses were impacted by cybersecurity incidents last year, down from 21 per cent in 2019, as they spent more money to prevent attacks.

The report found 16 per cent of small businesses, 25 per cent of medium-sized businesses and 37 per cent of large businesses reported being affected by cybersecurity incidents in 2021.

Statistics Canada said Tuesday businesses most commonly faced attempts to steal money or demand ransom payments and efforts to steal personal or financial data.

Sixty-one per cent of affected businesses identified external parties as the perpetrator of cybersecurity incidents, while 38 per cent could not identify the perpetrator.

The percentage of businesses that reported spending money to detect or prevent cybersecurity incidents remained relatively the same in 2021, at 61 per cent, compared with 62 per cent in 2019.

However, the amount of money Canadian businesses spent to detect or prevent cybersecurity incidents increased by roughly $2.8 billion in 2021 to $9.7 billion when compared with 2019, Statistics Canada said.

Large businesses spent $4.4 billion, small businesses spent $2.9 billion and medium-sized businesses spent $2.4 billion last year.

Businesses that were hit with a cybersecurity incident spent a total of slightly more than $600 million to recover, an increase of about $200 million dollars from 2019.

The report also found that many companies have been implementing policies and procedures to mitigate risks. 

More than six in 10 businesses had at least one employee responsible for overseeing cybersecurity risks and threats as of 2021, almost four in 10 had a consultant or contractor to manage threats, and almost one-third had monthly or more frequent updating of operating systems.

Loblaw freezes prices of all No Name brand products until Jan. 31, 2025


Canada’s biggest grocer is freezing prices on all its No Name products until next year as double-digit food inflation sends grocery bills spiralling.

Loblaw Companies Ltd. said Monday it has locked in prices of the popular house brand, which includes more than 1,500 grocery items, until Jan. 31, 2023.

In a letter shared with customers, Loblaw chairman and president Galen G. Weston said the price of an average basket of groceries is up about 10 per cent this year with some items like apples, soup and chips up even more.

"Maddeningly, much of this is out of our control" as food suppliers pass on higher costs to Loblaw, he said.

While the grocery chain is pushing back against unfair price increases, most are reasonable and stem from increases in suppliers' basic costs, Weston said.

In an effort to help Canadians "hit the brakes on food inflation," Loblaw is locking in No Name prices and promising more deals in the weeks to come, he said.

"Anyone who regularly visits the grocery store knows that over the past year the cost of food has increased rapidly," Weston said in a letter shared with members of the company's PC Optimum loyalty program.

Freezing prices of the private label brand with distinctive yellow-and-black packaging follows similar announcements by grocers in other countries.

In August, French supermarket chain Carrefour announced plans to freeze prices on about 100 of its house-brand products until Nov. 30.

In June, German grocer Lidl's U.S. arm introduced a summer price-cutting campaign to ease the inflationary burden on customers. The company said it dropped prices on more than 100 items in its stores across nine East Coast states until August.

"We've seen grocers voluntarily freezing prices across the G7 for a while now," said Sylvain Charlebois, Dalhousie University professor of food distribution and policy. "It should have happened a long time ago in Canada."

Finance Minister Chrystia Freeland praised Loblaw's move Monday, calling it a "great decision." She said corporate Canada as a whole needs to do what it can to push back against the high prices that are making life hard for many families across the country.

"I would really encourage all Canadian companies to take a Team Canada approach to the challenge of the cost of living," Freeland said.

"We should all be taking seriously our responsibility to do everything we can to help all Canadians get through this."

Grocers are able to freeze their house label prices because they control the supply chain from the beginning to shelf pricing, said Marty Weintraub, partner and national retail consulting leader at Deloitte Canada.

"We're seeing grocers globally focusing on the value proposition around private label because they can quite frankly control (the supply chain) and there's a good PR message that resonates with consumers," he said. "It gets a lot harder with national brands because ... you don't control the supply chain."


The price gap on average between private label and national brands can be north of 15 to 20 per cent, Weintraub said.

Price freezing can be "win-win" for retailers and consumers, he added.

"The retailer wins because their margins are higher on private label and the consumer wins because they paid less," Weintraub said.

Canada's big grocery retailers have come under fire in recent months as many chains have continued to post strong profits while consumers are hit with higher prices amid relentless inflation.

NDP Leader Jagmeet Singh has said "greedflation" is behind higher grocery bills, suggesting "rich CEOs" are to blame for the rising cost of food.

He called Loblaw's decision to freeze No Name prices a "positive step" but said the grocer "could have acted a lot sooner."

"We're concerned that they're freezing the higher prices, the inflated prices," he told reporters as he discussed a motion to investigate food prices.

Locking-in No Name prices will help to repair some of the image issues Loblaw has faced in recent months, Charlebois said.

"This is also a PR strategy ... a lot of Canadians are blaming grocers for what's going on with food inflation," he said.

"Some of it is deserved ... but much of that criticism is unfair because food prices can rise for a variety of reasons beyond a grocer's control."

Meanwhile, Loblaw's decision to freeze its house brand could inadvertently hurt smaller grocers in Canada, said Gary Sands, senior vice-president of public policy for the Canadian Federation of Independent Grocers.

If freezing prices amid ongoing inflation cuts into Loblaw's revenues, the company could look to recoup those losses through tougher negotiations with suppliers — who could in turn raise prices for independent grocers, he said.

"We have a concern about this because, based on our experience, when there's tension between the large chains and the large suppliers, there tends to be a ripple effect on the independents," he said.

"If a big chain retailer is squeezing a large supplier and they acquiesce to those demands, we could see a ripple effect on how they in turn deal with the smaller players in the market."

Consumers will be watching to see if grocers implement similar price freeze as Loblaw: Charlebois

All eyes will be on Canada’s other major grocers to see if they respond to Loblaw Companies Ltd.’s price freeze on No Name products with similar moves, said Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University.

“It'll be interesting to see how Loblaws’ competition, Empire’s Sobeys Inc. and Metro namely, are going to be reacting to this because on Wednesday, Statistics Canada will come out with new inflation numbers,” Charlebois said in an interview Monday.

“And again, grocers will face a barrage of criticism once again.”

Statistics Canada is set to release the latest read on Canadian inflation this Wednesday. In August, inflation eased for a second month amid lower gasoline prices, but food costs rose at its fastest pace in August since 1981.

On Monday, Loblaw announced it would lock in prices for its brand No Name, which offers more than 1,500 grocery items. The company said the price freeze will last until Jan. 31.

In a statement to BNN Bloomberg, a Metro Inc. spokesperson said it’s normal to have a price freeze during this time period.

“It is an industry practice to have a price freeze from November 1 to February 5 for all private label and national brand grocery products and this will be the case in all of METRO banners (in Ontario, Metro, Food Basics Ltd., Marché Adonis),” the spokesperson said over email on Monday.

“There may be a few price increases received prior to October 31 that will appear on the shelf, but no price increases thereafter.”

Sobeys’ parent company Empire has not replied to BNN Bloomberg’s request for a comment on whether they will be implementing a price freeze.

While Loblaw isn’t the first grocer to halt price increases, Charlebois said this could mark one of the largest campaigns in the world.

He said the biggest price freeze campaign he’s seen to-date was from a France-based grocer that halted the prices of 300 products.

 

SOME CONSUMERS QUESTION PRICE GOUGING 

Charlebois flagged that this announcement by Loblaw comes at a time when Canada’s big three supermarket chains face a parliamentary inquiry.

The House of Commons agriculture committee voted on Oct. 5 to call on the three grocery chains’ chief executive officers to testify on why “the cost of groceries [is] going up, while large chains are making profits.”

“All of these grocers are going to be summoned by Ottawa to testify,” Charlebois said.

“So Loblaw now has an answer (to higher prices), it'll be interesting to see exactly what answers are going to be provided by both Empire (Sobeys’ parent company) and Metro.”

A survey also released by the Bank of Canada on Monday found that Canadians’ views on food inflation are becoming more divided.

“Views on domestic factors affecting inflation are now more polarized, and some people think high government spending and price gouging by domestic retailers are also playing a role,” it said in the Canadian Survey of Consumer Expectations—Third Quarter of 2022.

“Results of follow-up interviews indicate that some see high inflation as pervasive, with no declines in the prices of food or other products.”

 

SAVING ON CHRISTMAS DINNER

Charlebois said he was surprised at the timing of the No Name price freeze announcement.

“This campaign includes the very lucrative holiday season,” Charlebois said.

“Grocers take a lot of money during the holidays, so basically Loblaw is offering a safe place for consumers to go if they're looking for deals.”

He also said the campaign will end right before the Canadian Dairy Commission will be implementing its next price hike for dairy.

Canadian milk prices will be going up around 2.2 per cent on Feb. 1.