Economics

High Inflation Makes Trudeau’s Spending Habits Harder to Justify

  • Canada’s overheating economy no longer needs fiscal support
  • But ambitious agenda, power-sharing deal make cuts unlikely
WATCH: Chrystia Freeland says Canada’s economy can avoid a crash even though inflation is ‘far too high.’Source: Bloomberg
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Justin Trudeau can take solace from the fact that inflation probably won’t get much worse than June’s reading of 8.1%. The Canadian leader’s political problems, however, are just beginning.

Statistics Canada said Wednesday that annual consumer price gains hit their highest since January 1983, a week after the Bank of Canada surprised markets by hiking interest rates by a full percentage point to beat down inflationary pressures.