Like many around the world, Canadians are struggling with the cost of food. But amid accusations of “greedflation” – taking advantage of inflation to raise prices – the country’s largest grocery chains say they aren’t to blame.

With food prices mounting, Canadian grocery store giant Loblaw made a promise: the cost of products under its lower-cost in-house brand, No Name, will remain frozen for three months.

The offer, announced in a promotional email by Loblaw CEO Galen Weston on 17 October, wasn’t well-received. Some labelled it a PR stunt, while others declared it too little, too late.

The sour reaction isn’t without reason. Inflation has slowed in recent months, but the cost of food is still soaring with increases reaching a 41-year high.

At the same time, large corporations – including grocers – are reporting record earnings. Loblaw’s first-quarter profit this year was up nearly 40% from that of last year, and its net earnings after adjustments were up 17%.

In Canada, where distrust in grocery magnates runs deep from a recent bread price-fixing scandal, this dilemma has turned political.

Members of parliament have accused grocery chains of taking advantage of inflation to raise prices more than needed – a phenomenon dubbed by some “greedflation”.

On the same day Mr Weston’s letter was sent, Canada’s parliament unanimously passed a motion that accused grocery CEOs of “corporate greed”. On Monday, the federal competition watchdog launched an investigation into the sector.

But is there any truth to the idea of greedflation? Economists say it’s complicated.

-BBC