P.E.I. residents to receive tax-free inflation relief money this week

This week, the CanadaRevenue Agency will begin distributing $58 million in P.E.I. government funding, aimed athelpingIslanders cope with rising inflation.

Starting Thursday, more than 117,000 Island residents will receive a one time tax-free payment of up to $500, or up to $1,000 for couples or single parents. The exact amount will depend on their net income from 2021.

The annual inflation rate on P.E.I. rose a full percentage point to 9.7 per cent in November, whilenationally the rate was down 0.1 percentage point to 6.8 per cent. The province'sinflation rate has been the highest in the country every month since March 2021.

But some people say the P.E.I. government's one-time relief payments won't go far enough to help Islanders who are struggling.

"Sometimes these payments actually tend to make things worse because grocers will know that people have more cash," said Sylvain Charlebois, the director of the Agri-Food Analytics Lab at Dalhousie University.

"If you give money to everyone, you will create this tide-flation effect. Everything rises because [of] demand," Charlebois said.

Instead, Charlebois said he would recommend a more targeted approach,concentratingrelief dollars on those who need it most.

High inflation affecting groceries, rent

For Kay and Gerry Soy, who live on a fixed income,high grocery prices have meant changingtheir shopping habits.

"We have to watch what we buy," said Kay, adding they lost two freezers full of food after post-tropical storm Fiona.

They also are facing a rent increase of 15 per cent.

While they welcome the idea of a inflation relief payment, Gerry said it won't be enough.

"That's going to help immediately, but not long term," he said.

'You just kind of make it work'

Making a meal plan and sticking to a budget are some of the ways Ashley Murphy and her family have been dealing with the rising cost of living.

"It's definitely been a challenge, especially being on maternity leave. Definitely not making as much money these days, but you just kind of make it work," she said.

Murphy said she thinks the paymentwill be a great help, especially since many people had extra costs over Christmas.

"I definitely think that will help put some food on people's tables," she said.

Murphy said her husband has been working extra hours, which has helped.

"If you don't have the extra support, and the two people at home, it definitely makes it hard."

Payments too little, too late: P.E.I. Opposition leader

P.E.I. Green Party Leader Peter Bevan-Baker said the inflation payments are very welcome, but he sees them as too little, too late, and not sufficiently targeted to the people who need it most.

"We could afford to do a lot more than we currently are," he said.

And although everyone is impacted by rising inflation rates, Bevan-Baker said not everyone is affected equally.

"It's particularly impacting those low- and middle-income Islanders who are really struggling to meet rent, to buy food, to pay for their energy costs," he said.

In addition to a more targeted way of distributing the funds, Bevan-Baker said increasing the minimum wage, improving support for food banks and community fridges and expanding seniors' food programs are some ways the government could help those struggling.