The rising cost of living and increased inflation has many people turning to government for help, but one analyst says there are concerns that some government relief measures could actually make inflation worse.

Senior Policy Analyst with the Atlantic Province’s Economic Council, Fred Bergman says many provincial governments, including Newfoundland and Labrador, have already implemented relief measures to help people with rising costs like food and heating fuel.

However, he says governments have to be careful so as not to stoke inflation.

Some might argue, says Bergman, that some pandemic relief measures were so generous that they may have helped to stoke inflation—that is because people had more money and businesses knew they had more money, to pay higher prices. The question there according to some says Bergman, is what kind of spiral might that lead to?

Bergman says government relief measures need to be income-tested and targeted.

He says support needs to be provided to low-income households that can least afford higher prices for essential goods and serves.