Wage freeze anyone? Ontario cost of living rises 2.9% -- Thanks Dalton McGuinty!

Buried in today's Statistics Canada report on inflation in July is the fact that inflation in Ontario has increased from 1.6% to 2.9%. The new "Harmonized Sales Tax" (HST) came into effect on July 1 in Ontario. As the HST transfers costs to consumers, the increase in the cost of living in Ontario is now the highest in the land.

This means you have to earn 2.9% more dollars to maintain your standard of living as of a year ago. And if your wages were frozen (as the government would like), your standard of living would go down by an equivalent amount.

For those of you lucky enough to live in Toronto or Ottawa, the increase is 3.1% and 3.0% respectively. (The Statistics Canada report is here and a quick Canada-wide summary from the Globe and Mail is here ).

It's worth remembering that the same McGuinty government that brought you the HST also wants to freeze your wages.

dallan@cupe.ca

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