Loblaw released its August Food Inflation Report on Aug. 25, 2026, highlighting a moderation in store food inflation to 3.1% year over year for July, down from 3.9% in June.

The data follows Statistics Canada’s release of Consumer Price Index (CPI) figures for the month of July. While the deceleration offers some relief, the company emphasized that food cost pressures remain elevated, continuing to impact Canadian affordability.

Market Dynamics

Loblaw stated that various factors are sustaining pressure within the food system. These include weather conditions, freight costs, supplier expenses, currency fluctuations, and tariff uncertainty. Consequently, the retailer observed that shoppers are making deliberate choices to stretch their budgets.

The report aims to provide context on these consumer behaviors and outlines steps the company is taking to deliver value in key areas.

What the Numbers Show

The decline in inflation from June to July indicates a short-term easing of price growth momentum. However, with year-over-year inflation still above 3%, the data suggests that while the rate of price increases is slowing, the absolute cost burden on consumers remains significant compared to the prior year baseline.

Loblaw Companies Limited has established an automatic share purchase plan (ASPP) to acquire common shares of EQB Inc., following the sale of President’s Choice Bank to EQB. The plan allows a broker to purchase shares on Loblaw's behalf when it is not in possession of material non-public information, adhering to TSX and Canadian securities laws. The initiative underscores Loblaw's continued strategic relationship with EQB post-transaction.

Under the ASPP, the broker may buy EQB common shares up to a maximum aggregate limit. This cap is defined as the lesser of 10,600,000 shares or 24.90% of EQB's total issued and outstanding shares at any given time. This limit aggregates with the 8,457,601 EQB common shares Loblaw acquired prior to the broker agreement. The plan will terminate once this maximum amount is reached or if terminated earlier under its terms.

The Ontario Securities Commission, acting as principal regulator, has granted exemptive relief for normal course market purchases. This relief permits Loblaw and its affiliates to exclude 7,237,601 EQB common shares—issued to Loblaw upon the closing of EQB's acquisition of PC Financial—from ownership calculations. This exclusion applies to the 12-month period preceding any relevant purchase date.

Outside the ASPP's effective period, Loblaw retains the discretion to purchase EQB common shares as permitted by applicable law. The company is Canada's largest retailer, operating over 2,800 locations and employing more than 220,000 people across its corporate and franchise network.

Key Plan Parameters