The federal government in Ottawa has announced additional measures to help low-income
earners manage inflationary pressures.
In addition to the previously announced doubling of the GST rebate, Ottawa is also planning to
provide low-income renters with a one-time $500 payment through the Canada Housing Benefit.
The government also says it is moving forward on developing a national dental care program.
Ottawa said it will launch the program for children under the age of 12 and provide up to $650
per child for families that earn less than $90,000 a year and have no private dental coverage.
The federal government estimates that the measures to help Canadians manage inflation will
cost taxpayers $4.6 billion. Legislation needs to be passed in Parliament before the programs
can be implemented nationwide.
Inflation in Canada has soared this year, reaching 7.6% in July as the cost of food, gasoline and
services remain elevated coming out of the pandemic.
In response, the Bank of Canada lifted its benchmark interest rate by 75 basis points last week
and signalled that further rate increases are coming in the months ahead.
