Manitoba government points to low inflation rate after fuel-tax cut

WINNIPEG — The Manitoba government says its fuel-tax cut is helping to keep the inflation rate low, but is not saying how long the cut will remain in place.

The province suspended the 14-cent-per-litre provincial fuel tax on Jan. 1 for at least six months, with an option to continue it for another six, as a way to help people cope with the rising cost of living.

Premier Wab Kinew is not saying whether the tax cut will continue beyond June, but says while inflation has eased, people are still feeling the impact of higher interest rates.

New figures from Statistics Canada show Manitoba had the lowest inflation rate among the provinces in January -- less than one per cent compared with the same month last year.

The NDP government has also taken out advertising on billboards, in social media and elsewhere to promote its fuel-tax cut.

Kinew says it's good to let Manitobans know that the government is working to lower inflation, which he says is the number one issue for people.

This report by The Canadian Press was first published Feb. 20, 2024

The Canadian Press