New report says Ottawa to blame for higher consumer prices after spending splurge

A new report by the C.D. Howe Institute attributes soaring inflation during the pandemic primarily to the Trudeau government’s extensive spending, which totalled approximately $360 billion, rather than the Bank of Canada’s interest rate policies. While the government programs provided crucial relief, their injection of funds into the economy, alongside supply constraints and increased consumer demand, contributed to a significant rise in prices, with inflation peaking at 8.1% in June 2022.

Explain It To Me Like I’m 5: A new report blames the Trudeau government’s excessive pandemic spending for rising inflation, suggesting that it contributed more to soaring prices than the Bank of Canada’s interest rate policies.

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