Facts – Government measures to ease the pain of inflation

Facts – Government measures to ease the pain of inflation

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(Reuters) – Pandemic-related disruptions in global supply chains and the spillover effects of the Russian war in Ukraine have combined to drive up prices for energy, commodities and basic necessities.

Here is a list of some of the actions governments have taken to bring relief to hard-hit consumers and businesses:

America:

* Canada on September 13 announced a C$4.5 billion ($3.38 billion) package with a tax credit for low- and modest-income families, and a one-time increase for a feature that helps low-income earners pay rent.

* Brazil is negotiating with Russia and Arab countries to increase diesel supplies to reduce fuel prices. This year, oil giant Petrobras announced multiple cuts to gasoline prices while the government in July cut fuel taxes and increased welfare payments.

* The US will offer debt relief to former students, while the $430 billion “Inflation Reduction Act” unveiled in August aims to lower prescription drug prices and offer tax breaks to encourage energy efficiency.

In August, Mexican officials said anti-inflation support has already cost about 575 billion pesos ($28.59 billion) this year.

* Chile announced in July a $1.2 billion aid plan that includes employment support and one-off payments to the hardest-hit.

Europe:

The European Union plans to raise more than 140 billion euros ($139.99 billion) to ease inflation by cutting revenue from low-cost power generators and making fossil fuel companies share windfall profits.

* Hungary has extended ceilings on the prices of fuel and basic foodstuffs until the end of the year.

* France will cap household energy and increase gas prices by 15% next year. In August, it passed a €20 billion bill that would raise pensions and some welfare payments.

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* Norway agreed to provide 3 billion Norwegian kroner ($292.21 million) in loans and support to companies. It also helps families pay their electricity bills.

* Italy agreed on September 16 a new package worth about 14 billion euros.

* Germany may nationalize troubled gas importer Uniper. A €65 billion relief package was also announced in September.

* Poland will spend more than 30 billion zlotys ($6.37 billion) to reduce energy costs and support businesses. It will also raise the minimum wage twice next year.

* The Czech Republic will cap electricity and gas prices next year.

* Britain is likely to spend more than 100 billion pounds ($113.86 billion) to cap consumer energy bills for two years and support businesses.

* Portugal reduced value-added tax on electricity and introduced one-time payments to workers, families and retirees.

* Spain will reduce the value-added tax on gas to 5% from 21% from October.

*Croatia will set electricity prices from October 1 to March.

* Finland and Sweden will provide liquidity guarantees to energy companies.

* Denmark in August set annual rent increases of 4% for the next two years, on top of previous measures.

Asia:

Thailand on September 13 extended tax cuts on diesel and energy subsidies and raised the minimum wage.

* At least 10 Indian states have announced total support in excess of 1 trillion rupees ($12.54 billion). On September 8, the government restricted rice exports, seeking to increase supplies and cool domestic prices. It also established a committee to review the prices of locally produced gas.

* Japan will introduce another economic package in October, adding to a record increase in the minimum wage and a $103 billion relief bill unveiled in April.

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* The Indonesian government on September 14 ordered district chiefs to keep food price inflation below five percent. In August, the government agreed to reallocate 24.17 trillion rupees ($1.61 billion) from fuel subsidies to welfare spending.

* Malaysia expects to spend 77.3 billion ringgit ($17.00 billion) in subsidies and cash assistance this year.

Africa and the Middle East:

* On September 15th, the Tunisian government signed an agreement with a major trade union to raise public sector wages and the minimum wage.

* Egypt announced on August 30 a package to help liquidate the backlog of goods at the ports and reduce the prices of goods for Egyptian consumers.

* South Africa announced in late July a reduction in fuel prices.

* Botswana reduced value-added tax in July by 2% for a period of six months.

* Turkey in July raised the minimum wage by about 30%, on top of the 50% increase at the end of last year.

* Saudi Arabia and the UAE in July raised their social welfare spending.

(1 dollar = 1.3297 Canadian dollars)

(Dollar = 20.1141 Mexican Peso)

(1 dollar = 1.0001 euro)

(1 dollar = 10.2666 Norwegian kroner)

(1 dollar = 4.7073 zlotys)

(dollar = 0.8783 pounds)

(dollar = 79.7310 Indian rupees)

(1 dollar = 14975.0000 rupees)

(1 dollar = 4.5480 ringgit)

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