Provinces' tactic of doling out cash fuels inflation, economists caution

Provinces peppering the public with cash to deal with soaring prices compounds inflation rather than easing it, economists say.

They say the tactic used by Alberta this week and B.C. and Quebec earlier this year fails to quell inflation because having extra money means people will continue spending and demand for products and services will stay high, keeping decades-high inflation from budging.

If people had less money to spend while prices were high it would weigh on inflation, they say.

Inflation sat at 6.9 per cent last month, down from 8.1 per cent in June.

Giving money to households is “likely to contribute to the problem as opposed to solving it,” said Travis

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