Ottawa – The federal government is promising to tackle rising cost of living as it faces pressure to devise a plan to help calm inflationary pressures.
Annual inflation hit an 18-year high in October, driven largely by rising prices at pumps and grocery store aisles, helped by housing costs, which could shake their mid-year moderation. Is.
Supply chains around the world have been stuck due to price pressures that have been unable to meet rising consumer demand for goods.
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Tuesday’s throne speech, which set out the Liberals’ priorities for their third mandate, said inflation concerns are plaguing countries around the world.
And while it also touted Canada’s economic performance, including jobs returning to pre-pandemic levels, the text of the speech said the country must deal with rising costs of living.
While the text alluded to the Liberal campaign’s promises on child care and housing, it fell short of looking to business groups and opposition conservatives in the lead-up to the speech.
In addition to plans to address supply-chain bottlenecks, liberals were also asked to put the brakes on spending plans, worried that too much could lead to inflation and hinder economic recovery.
The government’s plan for the economy will go before the House of Commons in the coming days.
Finance Minister Chrystia Freeland is set to introduce a bill that would provide aid to still-affected industries such as tourism and send unemployment aid to workers subject to lockdown.
Throne’s speech said the government is “moving towards more targeted support, while managing spending judiciously.”
Speaking ahead of Tuesday’s speech to the throne, Conservative finance critic Pierre Poiliver suggested his party could support targeted relief, but the Liberals did not plan for $100 billion in stimulus.
“We believe that we should go back to normal pre-COVID levels of spending. We do not believe that it is necessary to create new, permanent, multi-billion dollar programs that existed prior to COVID” Were not,” said Polievere.
“What we need to do is get back to cheap government so that we can have an affordable cost of living.”
Inflation is expected to remain above the Bank of Canada’s two-percent target by the end of the year and into 2022.
This report by The Canadian Press was first published on November 23, 2021.