Anti-Inflation Act

The Anti-Inflation Act was a Canadian Act of Parliament that was passed in 1975 by Prime Minister Pierre Trudeau's government to slow down the rapidly increasing price and wage inflation.[1] Among its many controls, it limited pay increases for federal public employees and those in companies with more than 500 employees to 10 per cent in the first year, 8 per cent the next, and 6 per cent thereafter.[2] The price and wage controls were enforced until 1978, and the act was repealed in 1979. A similar program aimed only at the public sector was introduced in 1982.

Anti-Inflation Act
Parliament of Canada
Long title An Act to provide for the restraint of profit margins, prices, dividends and compensation in Canada
Considered by	House of Commons
Passed	3 December 1975
Considered by	Senate
Passed	10 December 1975
Royal assent	15 December 1975
Legislative history
Bill introduced in the House of Commons	C-73
Introduced by	Donald Stovel Macdonald
First reading	16 October 1975
Second reading	27 October 1975
Third reading	3 December 1975
Bill introduced in the Senate	C-73
First reading	3 December 1975
Second reading	9 December 1975
Third reading	10 December 1975
Status: Repealed

Prior to 1975, the Bank of Canada had warned the government about the dangers of the current inflation which was roughly 10 per cent a year. In response, the government brought in the Anti-Inflation Act which created the Anti-Inflation Board to set wages and prices.

Trudeau had mocked the idea in the 1974 election. The act proved highly contentious and there was much debate over whether the Parliament of Canada had overstepped its powers in enacting the law. Consequently, the government put a reference question to the Supreme Court of Canada, and in 1976, the court passed down its opinion in Reference Re Anti-Inflation Act, which declared the law constitutional.