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:

Brazilian oil giant Petrobras has cut fuel prices several times this year. In July, the government cut fuel taxes and increased welfare payments.

* The President of Mexico will meet with food producers and distributors to prevent the rise in prices of 24 basic commodities. In August, officials said that boosting inflation has already cost about 575 billion pesos ($28.91 billion) this year.

Canada on Sept. 13 announced a C$4.5 billion ($3.34 billion) package with a tax credit for low- and modest-income families, and a one-time increase for low-income earners on rent payment.

The United States has offered former student debt relief, while the $430 billion “Inflation Reduction Act” unveiled in August aims to lower prescription drug prices and offer tax breaks to encourage energy efficiency.

* 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 ($138 billion) to ease inflation by cutting revenue from low-cost power generators and making fossil fuel companies share windfall profits.

* Britain will cap wholesale electricity and gas costs for businesses at less than half the market price. A plan announced in September to help families is likely to cost 100 billion pounds ($113 billion).

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* Germany agreed to nationalize the gas import company Uniper. In early September, the government announced a €65 billion package for consumers and businesses.

* Sources said that France is expected to start its acquisition of the Electricity Group (EDF) by the end of September. It will also set home energy and gas price increases by 15% next year, and in August passed a €20 billion relief bill.

* Greece will pay another 1.1 billion euros to support the October electricity bill for households and businesses.

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

* Norway agreed to spend 3 billion Norwegian kroner ($290 million) to help businesses. It also helps families pay their electricity bills.

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

* Poland will spend more than 30 billion zlotys ($6.2 billion) to freeze energy prices and support businesses. It will also raise the minimum wage twice next year.

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

* 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.

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India on Sept. 8 imposed curbs on its rice exports, looking to boost supplies and cool down 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.

* The government of Indonesia 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 ($16.93 billion) on aid 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 clear the accumulated goods at the ports and help reduce the prices of goods.

* South Africa announced in July fuel price cuts.

* 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 social welfare spending.

(Dollar = 19.8916 Mexican Peso)

(1 dollar = 1.3479 Canadian dollars)

(1 dollar = 1.0140 euro)

(dollar = 0.8846 pounds)

(1 dollar = 10.3426 Norwegian kroner)

(1 dollar = 4.8296 zlotys)

(dollar = 80.8750 Indian rupees)

($1 = 15,015,000 rupees)

(dollar = 4.5650 ringgit)

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