Experts weigh in a day after Alberta Premier Danielle Smith announces Inflation Relief Act

Premier promises inflation relief to Albertans A campaign-like speech from Alberta's new premier, and a targeted inflation relief package, is the talk of the province today.

Albertans are weighing in on Danielle Smith's Inflation Relief Act a day after the new Premier announced her targeted measures during a televised, campaign-like speech.

The act, which is slated to take hold in January, will give $600 over six months to families earning less than $180,000 for each child under the age of 18.

Seniors will also receive the benefit.

Additionally, Smith says her government will index income supports to inflation, provide $200 in consumer electricity bill rebates through the winter months and suspend the entire provincial fuel tax for at least the next half-year.

The $2.4-billion plan has at least one economist optimistic.

Trevor Tombe says the package will help families – who typically spend more on gas and food – fight debt and mounting bills.

But he doesn't believe it will combat inflation.

"These measures are really just there to cushion household budgets," he told CTV News.

"It's not necessarily something that's going to boost or detract from economic activity overall."

The University of Calgary professor believes the benefits will go a long way to supporting some of the Albertans in need throughout the winter.

His key word: "some."

"There's some missed opportunities here to provide better targeted support to lower-income Albertans in general," Tombe said, pointing to the lack of any direct payment for childless adults.

LONG-TERM ELECTION STRATEGY

University of Lethbridge political scientist Trevor Harrison says the missing piece is easy to explain away.

"One has to think that this is targeted at groups that they hope will come back to the fold again," he said.

"The idea here is that (seniors and parents) are the people most likely to vote."

The measures will hold for six months. That's when Albertans next head to the polls.

"So, I suspect a lot of people will wonder how much of this is electioneering and if (the payments) will disappear again," Harrison said.

"It was really the first salvo in what I think will be a very bitter election campaign."

INFLATION FALSEHOOD

During her announcement Tuesday, Smith attributed high inflation primarily to the federal government and its high spending.

Tombe says that is false.

"The majority of the inflation that we're seeing and a majority of the acceleration of inflation over the past year is due to external supply-side factors, not to the Bank of Canada or federal spending," he said.

Smith's announcement comes ahead of Alberta Finance Minister Travis Toews making a mid-year fiscal update and economic statement on Thursday.

(With files from The Canadian Press)