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Newspaper
Hamiota Echo
Location
Hamiota, Manitoba, Canada
Date
Sep 23, 1976
Page
7
The program started last October 14 with the Anti Inflation Act passed in December. Projections aim to reduce inflation from 10.8 percent to 8 percent or less while guidelines control prices profits incomes and fees. Provinces back the plan and enforce rents rules. Many Canadians worry prices rise faster than wages, though overall salaries have kept pace or outpaced prices.
More than half of agreements reported to the Anti-Inflation Board followed established arithmetic guidelines. A downward trend in wage increases has begun and is expected to continue as Canadians realize lower inflation makes smaller settlements acceptable.
The text explains that since the anti inflation program began Canadians gained real buying power. It notes 3.6 percent real income rise by spring and a CPI inflation rate drop to 6.2 percent by August. It projects the 8 percent target will be met.
The program restrains wage rises with an 8 percent basic increase plus 2 percent tied to productivity and another 2 percent via price and income controls. The drop in inflation is attributed to these measures and nation-wide cooperation, as Canada moves toward a 6 percent or lower target in year two of the Ram.
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