Facts – Government measures to ease the pain of inflation

Facts – Government measures to ease the pain of inflation

(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:


* US President Joe Biden urged companies that operate gas stations, banks and mobile phone services to reduce consumer costs. In August, the government offered debt relief to former students and unveiled the $430 billion “Inflation Reduction Act.”

– The President of Mexico said that he agreed with the companies to maintain the prices of basic foodstuffs.

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

On September 13, Canada announced a relief package of C$4.5 billion ($3.29 billion).

* Chile announced in July a $1.2 billion aid plan.


The European Union plans to raise more than 140 billion euros ($134.93 billion) to ease inflation by cutting revenue from low-cost generators and making fossil fuel companies share windfall profits.

* France is in the process of fully nationalizing the EDF Energy Group (EPA:). It will also set home energy and gas price increases by 15% next year, and in August passed a €20 billion relief bill.

* Denmark approved on September 23 a package of 5.05 billion Danish kroner ($654.85 million), adding to previous measures.

* Britain will cap wholesale electricity and gas costs for businesses at less than half the market price. In September, it announced a plan to help families.

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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.

* 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 ($279.69 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 ($6.07 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.


* China will release the fourth batch of its pork reserves this month to cool prices.

* Vietnam plans to reduce special consumption tax and value-added tax on fuel.

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

* India on September 8 restricted its rice exports. It also established a committee to review the prices of locally produced gas.

* Japan will introduce another 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 government of Indonesia on September 14 ordered district chiefs to keep food price inflation below five percent.

* Malaysia expects to spend 77.3 billion ringgit ($16.77 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.

(1 dollar = 1.3684 Canadian dollars)

(1 dollar = 1.0376 euros)

(1 dollar = 7.7117 Danish kroner)

(dollar = 0.9256 pounds)

(1 dollar = 10.7263 Norwegian kroner)

($1 = 4.9399 zlotys)

(dollar = 4.6090 ringgit)

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