NDP calls for action as consumer confidence plummets, inflation soars in Alberta

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The drastic drop in consumer confidence in Alberta fueled by runaway inflation points to the urgent need for a provincial government flush with energy royalties to take action, critics and anti-poverty advocates say.

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The opposition NDP says a Conference Board of Canada survey showing consumer confidence fell more than 20 percent in Alberta last month compared to a national average drop of 8.8 percent is a worrying indicator, even as the The UCP government announced last week a budget of $3.9 billion. surplus for 2021-2022.

“Their numbers are a serious warning sign for Alberta,” said Deron Bilous, the party’s critic for Jobs, Economy and Innovation.

“The Albertan government is not supporting Albertans at a time when costs have skyrocketed.”

In May, Alberta’s inflation rate was 7.1 percent, while Calgary’s hit 8 percent, the highest levels in nearly 40 years.

It comes at a time when the Russian invasion of Ukraine and pent-up travel demand has led to skyrocketing oil prices, filling the coffers of provincial governments in record numbers.

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But Bilous said that hasn’t reached most Albertans.

“There’s a lot of money flowing into Alberta, but it’s clear Alberta families aren’t seeing any of that…. We are not seeing companies reinvesting that money in Alberta,” she said.

The deindexation of provincial income taxes and the province’s disability benefits, while slashing other social payments and removing caps on utilities and auto insurance, has only deepened Alberta’s fiscal plight.

At a news conference Monday announcing up to $38 million in government assistance to help settle Ukrainian war refugees, outgoing Prime Minister Jason Kenney said there will be more energy-related help for residents. of Alberta to be released later this week, along with previously announced utility discounts coming to the United States. July and October.

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“We recognize that Alberta’s budget improves as energy prices rise, so there’s a strong argument that the Alberta government should reflect that by helping people with the cost of energy,” he said, noting that the province has already suspended its 13 cent percent. Tax per liter of gasoline.

And he shot down the liberal federal government for failing to provide relief at the gas pumps by lowering its carbon tax, calling it ideological cruelty.

“Ottawa has shown that it is completely unplugged and unfortunately there are some politicians who really want to push people into energy poverty so they use less energy,” he said.

“It’s like trying to fix the problem of overweight people by making food unaffordable. It’s ridiculous.”

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Kenney said the province has no plans to use its budget surplus to ease financial burdens faced by municipalities, but added that the gas tax exemption benefits families by reducing city and school bus fares.

But one anti-poverty advocate said such government actions lack adequate scope and urgency given growing desperation, particularly among low-income people.

“There is a lot of angst in the community right now — every month we hear talk that inflation is getting worse and that we will be in this financial crisis for some time,” said Meaghon Reid, CEO of Vibrant. Calgary communities.

Supports that existed in the depths of the pandemic have expired as people face increasingly difficult choices about essential spending, he said.

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“The (provincial) government needs to immediately reindex Severely Disabled Income Assurance and we need living wages,” Reid said.

His group estimates that about 200,000 Calgarians, or 15 percent of the city’s population, now live below the poverty line, a number that is constantly fluctuating for the worse.

Governments, he said, should also focus on ending homelessness, which would save money in the long run.

“If we don’t fix the ship now, it’s going to cost more in the future… if we don’t do these things, then a surplus is nothing to celebrate,” Reid said.

Meanwhile, the Bank of Canada Consumer Expectations Survey suggests inflation expectations have also risen on concerns about food, gas and rent prices.

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The consumer report also said that expectations of higher inflation and rising interest rates are weighing on consumer confidence.

The bank noted that lower-income Canadians and older people are more concerned about grocery prices and rent than younger respondents and higher-income households.

Consumers, especially those with lower incomes, are adjusting to high inflation by cutting back on spending, postponing major purchases, seeking discounts and cheaper alternative options, he said.

— With archives from The Canadian Press

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Twitter: @BillKaufmannjrn