Canada inflation measures announced by feds

The federal government has announced measures to try and help make things more affordable for Canadians grappling with the high cost of living.

Ottawa says it will double the GST tax credit for six months. Prime Minister Justin Trudeau anticipates this will “provide hundreds of dollars of support to Canadians.”

Trudeau says the government is also going to provide a one-time, $500 top up to the Canada Housing Benefit Program, which you need to apply for.

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“People who currently receive hundreds of dollars in housing benefits each month through the program we introduced and co-fund with provinces and territories can also apply to receive this additional support. On top of that, this federal top up would reach hundreds of thousands more low-income renters, with around 1.8 million Canadians eligible for it,” the prime minister explained, adding this is in addition to the federal government’s “comprehensive housing plan,” which was laid over over the past few months.

Meanwhile, Canada will be moving forward on its national dental care plan.

“We aim to have that program started for those under 18, persons with disabilities, and seniors by the end of 2023, with the full program completed by 2025,” Trudeau said Tuesday.

Earlier this year, the federal budget proposed $5.3 billion in funding over five years, and $1.7 billion ongoing, for a national dental plan. A dental program was listed as one of the key priorities of the Liberal-NDP supply and confidence agreement

Trudeau says members of the Liberal caucus have been “listening to Canadians” all summer about their struggles to deal with record inflation.

The Bank of Canada, along with others around the world, has been raising interest rates in an effort to cool Canada’s sky-high inflation which, year-over-year, was 7.6 per cent in July, well above the central bank’s two per cent target.

As key interest rates have risen, so have borrowing costs, creating even more unaffordability and debt for many people.