Will $52.9B in new federal spending make inflation worse?
Heading into this week’s federal budget, one question loomed large: would new spending fuel inflation and make it harder for the Bank of Canada to start cutting interest rates?
![Will $52.9B in new federal spending make inflation worse?](https://i.cbc.ca/1.6942773.1692641977!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_620/food-grocery-credit-card.jpg)
![A customer holds a credit card for payment at the check-out desk of a Caprabo SA supermarket in Barcelona, Spain, on Friday, Nov. 4, 2022. Soaring prices continue to weigh on activity in the euro zone’s fourth-biggest economy. Photographer: Angel Garcia/Bloomberg a person waits to pay with a credit card at a supermarket.](https://i.cbc.ca/1.6942773.1692641977!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_620/food-grocery-credit-card.jpg)
Heading into this week’s federal budget, one question loomed large: would new spending fuel inflation and make it harder for the Bank of Canada to start cutting interest rates?