This week, Deputy Prime Minister Chrystia Freeland is reportedly set to unveil a $7 billion package intended to help address Canada's historically high rates of inflation.

There's just one problem: When it comes to curbing inflation, dumping yet another $7 billion into the economy is probably among the least advisable medicines.

On Thursday, according to the Toronto Star Freeland is set to deliver a "significant" speech on Bay Street outlining an inflation strategy that will include pouring cash into entitlements such as Old Age Security and the Canada Child Benefit in order to help Canadians grapple with rising costs of living.

Canadian inflation currently stands at 6.8 per cent. This means that the loonie is losing nearly seven cents of purchasing power every 12 months. For a Canadian earning a median income of $55,700 per year, that translates to an annual inflationary loss of $3,787.60.