Mr. Speaker, the biggest economic news since the budget is inflation. During the last four months consumer prices rose at an annual rate of about 4.5 per cent, well above the target of 3 per cent set by the Bank of Canada.
In large part this inflation is caused by the depreciation of the dollar and the higher prices of imports and exportables it has brought.
Will the Minister of Finance admit this inflation if unchecked threatens living standards much more than the spending cuts needed to balance the budget and to fix the exchange rate?