By ANDREW COHEN

OTTAWA (UPC) - Prime Minister Pierre Trudeau has rejected opposition demands that he abandon high interest rates following last month’s 1.3 per cent increase in the Consumer Price Index. The jump, led by higher food, housing and tran- sportation costs, was the largest monthly increase since last June, Statistics Canada said. Because of statistical fluctuations, the

annual rate of inflation held steady at 11.6 per cent.

New Democratic Party leader Ed Broadbent said the large monthly increase proved the government's inflation fighting economic Strategy had failed and called upon the government to “abandon this high in- terest rate dogmatism”.

Trudeau, however, recited the government's familiar refrain. “We do not have a policy of high interest rates; we have high in- flation,” he told the House of Commons. “The way to bring down interest rates is to bring down inflation.”

Both New Party and Conservative Party spokesman warned Canadians could expect inflauon to rise over the short-term because of scheduled increases’ in energy prices and continued high government spending.

“We're still looking at a fairly substantial rate of inflation,” NDP MP Ray Skelly said. “It is interesting that as other components are going down the _ govern- ment’s own policy (on energy)... is the major item in driving up the cost of living. We'll see more bankruptcies.”

Democratic

Tory MP Michael Wilson said he was “disappointed” with the rate of inflation, which he calculated at 12.4 per cent in the first quarter of this year. In the last three months of 1981, it was 8.8 per cent.

“There are no heartening Signs,”” he said. ‘The government has just got to do more to win confidence of the people. It must cut its spending and bring public sectors wage and salary increases in line.”

Statistics Canada said a 5.4 per cent increase in energy prices boosted

transportation and housing

Al7 - Sunday, April 25, 1982 - North Shore News

costs. The higher prices for gasoline and_= fuel oil reflected the delayed impact of the $2.25 per barrel in- crease in crude oil prices that was announced January 1.

Canadians are now paying almost 25 per cent more for energy than a year ago.

The price of food, which

increased two per cent between January and February, rose 0.8 per cent between February 9 and March.

Higher prices for beef, dairy products, cereal and fresh fruit were the main factors behind the increase.

Just as we can look back with pride on our past, we can now look with pride to our future.

Canada now has its own Constitution with the traditional rights and freedoms

‘The Canadian Constitution and the Canadian Charter of Rights

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High interest rates, inflation here to stay

The rise was tempered by lower prices for selected fresh vegetables and pork cuts.

The total food index - food consumed both inside and outside the home - rose 6.5 per cent above its level in March 1981, up slightly from the 6.4 per cent increase registered between February 1981 and February 1982.

The agency reported also during the last 12 months the all-items index excluding food rose 13 per cent, down marginally from the 13.2 per cent increase between February 1981 and February 1982.