Newfoundland and Labrador’s premier says labour and inflation costs will affect the final price tag for the proposed Muskrat Falls hydroelectric project in Labrador.

Kathy Dunderdale can’t say how much the estimated $6.2 billion cost will rise when updates are released this summer, but says there’s no cause for panic.

She says a new price tag will be released ahead of a debate this fall before the government decides whether to go ahead with the development.

Nova Scotia Premier Darrell Dexter, who met with Dunderdale to discuss the joint project, says it’s still a good deal for his province.