Inflation hits hard in Nova Scotia as gas prices rise
Another five-cent increase greeted motorists at gas stations across Nova Scotia on Friday morning.
“I’m not going to make it take more than that,” Mike Green said while pumping gas.
Its filling almost reached $200.
It’s a pain that isn’t just felt at the pump.
“Everything is going up in price, people don’t have enough money to pay for everything,” Green says.
In April, inflation hit 7.1% in Nova Scotia, well above the Bank of Canada‘s prime rate of 1-3%.
This is why the central bank raises interest rates, but the effect will not be felt right away.
“There’s a lag effect, so even if you’re raising interest rates right now, we don’t really see the impact of those higher interest rates for another 18 to 24 months,” says Fred Bergman of the Atlantic Provinces Economic Council.
“That’s why we’re probably going to see inflation for another year or two.”
This means charities like Feed Nova Scotia expect the demand for food assistance to continue to rise.
“Last March, we supported over 18,000 Nova Scotians through food banks to which we also provide food,” said Feed NS President Nick Jennery.
But the province has made it clear that there is no immediate upward relief and certainly no gas tax reduction.
“We know Nova Scotians are struggling and we will continue to discuss what is possible,” Premier Tim Houston said Thursday.
Liberal finance critic Kelly Regan says talks aren’t helpful because people can’t wait.
“People are hurting now. This government must act now. Nova Scotia needs help now, and if it’s a good government and a compassionate government, it will do something now, and not wait,” said Regan.
Feed Nova Scotia sends 20,000 pounds of food a day. To meet demand, they now have to buy what they don’t have.