Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Trudeau Spending Risks Fueling ‘Inflationary Fire,’ CIBC Says

Sept. 9, 2022, 5:49 PM

Economists are warning Prime Minister Justin Trudeau’s government against using windfall revenue to add to spending amid concerns about inflation.

The calls come as the government prepares to double federal goods-and-services tax rebates for six months and support Canadian households struggling to pay rent. The plan, meant to be announced Thursday but temporarily delayed by the death of Queen Elizabeth II, is in addition to refunds and cash handouts already distributed by provincial governments.

Justin Trudeau.
Photographer: David Kawai/Bloomberg

Canada benefited from surging energy prices earlier this year, which helped the nation swing into recurring trade surpluses for the first time since 2014, ...