'Irresponsible and insensitive': Kenney renews call to scrap carbon tax, as inflation costs explode

Alberta's premier pointed his finger at a familiar target Wednesday, as calls for him to do something about rising inflation heat up in Alberta.

Canada's annual inflation rate rose to 5.1 per cent in January for the first time in 30 years, Statistics Canada reported, driven higher by prices for housing, gasoline and groceries.

While the NDP, an economics professor, and a public interest group called on Jason Kenney to do something in Alberta's new budget to lessen the problem, the premier argued that carbon taxes are a big part of rising costs.

"All it does is make it more expensive to heat your home, to use electricity and I think this is irresponsible and insensitive at a time Canadians are struggling," Kenney said.

Kenney pointed out that the NDP first brought in the provincial carbon tax, and Ottawa imposed a federal version when he scrapped Alberta's.

An economics professor agreed that rising energy costs are making life less affordable. The high price of a barrel of oil is part of that equation.

"Gas, grocery costs, everyday living costs…I think that’s where it's really going to affect the pocketbook," said Chetan Dave, an economics professor at the University of Alberta.

He predicts Albertans will continue to feel the pinch from inflation until early 2023.

"I am not sure that the UCP government budget, that is forthcoming, is all that much geared towards helping, for lack of a better term, mainstream Albertans," Dave said.

The professor worries the Alberta government is more concerned about balancing the budget than investing in major public services like healthcare and education.

"We want to see a real conversation through investment in budget in people, and a recognition the last two years have been extremely challenging," said Bradley Lafortune from Public Interest Alberta.

The opposition is calling for measures it says will make life more affordable for Albertans, starting with a reintroduction of rate caps for energy and insurance.

"This UCP government's actions have actually made life more expensive for Albertans, we have rising insurance rates, sky rocketing utility rates," said NDP MLA Deron Bilous.

Kenney said Wednesday that his new budget will include a natural gas rebate plan to help Albertans struggling to pay high energy costs.

Alberta Finance Minister Travis Toews will table the budget on Feb. 24.

With files from CTV News Edmonton's Chelan Skulski