Finance Minister Freeland To Outline Plan To Combat Inflation

Advertisment Federal Finance Minister Chrystia Freeland will outline Ottawa’s plan to lower inflation during akeynote speech today (June 16) at the Empire Club in Toronto.

The speech will be used to outline the steps the federal government is taking to combat therising cost of living that is a top-of-mind issue with Canadian voters.

Economists expect inflation data next week to show an annual increase of 7% or more, whichwould raise the likelihood that the Bank of Canada will follow the U.S. Federal Reserve with a75 basis point interest rate increase at its next meeting in July.

Freeland will not commit to any new spending measures during her speech, instead pointing togovernment programs that are already available.

Existing programs that are expected to be highlighted in the speech are an increase toCanada’s workers benefit for low-income earners, an increase to Old Age Security payments,and the government’s $30 billion child-care support program.

Ottawa is forecasting a deficit of $52.8 billion this fiscal year, or about 2% of gross domesticproduct (GDP), down from 15% at the peak of federal pandemic spending in 2020-2021.