Inflation | According to Eric Girard, the worst is behind us

(Quebec) Inflation would have peaked this summer and will fall “more significantly” this fall, estimates Quebec Finance Minister Eric Girard.

Posted at 4:25 p.m

Tommy Chouinard

Tommy Chouinard
The press

But with the cost of living rising more than expected, the government’s intention to send Quebecers an extra check if he’s re-elected is still relevant, he says.

After a cabinet meeting on Wednesday, Eric Girard explained that the latest statistics show that “the peak in North America was in June” in terms of the inflation rate.

In Canada, inflation rose to 8.1%, a level not seen since 1983.

“There can always be volatility, but with the information we have now, we would have had peak inflation in both the United States and Canada in the second quarter,” he said. All economists’ forecasts assume that inflation will remain high in the third quarter – July, August, September – to start a more pronounced decline in the fourth quarter. »

To cope with the rising cost of living, the government paid 6.4 million Quebecers $500 last spring. François Legault has already indicated that he wants to write a new check this fall if he is re-elected on October 3. His promise will be fleshed out in the election campaign.

According to Éric Girard, this additional financial support is still relevant even after inflation has peaked. “The fiscal forecast called for inflation of 4.7% in 2022. Since that time, with the invasion of Ukraine, we have observed an average inflation of 6.5%. Inflation is much higher than stated in the budget, which may indicate that additional compensation is needed,” he said.

The prime minister also dangled a promise of tax cuts.

Eric Girard had already calculated the risk of a recession at 35%. “The order of magnitude I gave is still good,” he said. For “all economists” in the private sector “it fluctuates between 25% and 50%”.

The consumer price index for July will be released on August 16th.

With the collaboration of Fanny Lévesque, The press

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