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Canada’s Inflation Climbs to 2.4% as Gas Prices Surge to Record High

  Canada’s inflation rate accelerated to 2.4% in March , up from 1.8% in February, as the Iran war triggered the largest monthly gasoline price increase on record . Statistics Canada reported that gas prices surged 21.2% month‑over‑month , a supply‑shock response to Iran’s closure of the Strait of Hormuz and broader Middle East instability.  Energy costs were the dominant driver of March inflation, with overall energy prices rising 3.9% year‑over‑year after a sharp decline the month before. Excluding gasoline, inflation would have eased to 2.2% , highlighting how concentrated the price shock was.  Food inflation offered mixed relief: grocery prices rose 4.4% , while fresh vegetables jumped 7.8% due to difficult growing conditions. Restaurant inflation cooled sharply as last year’s tax‑holiday distortions fell out of the annual comparison.  Economists note that while headline inflation spiked, core measures remained relatively tame , giving the Bank of Canada ro...
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Economists Criticize Liberals' New Stimulus Package, Question Long-Term Impact

 

Canada’s Liberal government has unveiled a new stimulus package aimed at addressing economic uncertainty, but the move is drawing skepticism from economists who question its rationale and potential implications for fiscal policy.

The package, which includes targeted financial relief for low- and middle-income households, tax credits for businesses, and infrastructure investments, is designed to counter inflationary pressures and boost economic activity. However, experts warn that such measures may have unintended consequences.

“Introducing new spending programs in the current economic climate could exacerbate deficits and put additional strain on taxpayers in the long run,” said Kevin Milligan, an economics professor at the University of British Columbia. “It’s not good for tax policy to continually rely on temporary fixes.”

Critics also argue that the package lacks clear metrics for success and risks fueling inflation rather than curbing it. Others, however, defend the plan as necessary to support vulnerable Canadians amid rising costs of living and global economic uncertainty.

As Parliament debates the package, opposition parties have demanded greater transparency on how the funding will be allocated and its expected impact on Canada’s long-term economic health.


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