Economy

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 announced C$4.5 billion ($3.39 billion) in measures, including a tax credit for low- and modest-income families, and an additional one-time benefit that helps low-income earners pay rent.

* The United States will help millions of indebted former students by canceling $10,000 of their outstanding student loans, while the $430 billion “Inflation Reduction Act” unveiled in August aims to lower prescription drug prices and introduce tax credits to encourage efficiency energy.

* Brazilian oil giant Petrobras cut LPG prices by 4.73% for distributors. In early September, it cut gasoline prices at the refinery’s gate by 7%, adding to the multiple cuts it has seen this year. In July, the government cut fuel taxes and increased welfare payments.

In August, Mexican officials said anti-inflation support has already cost about 575 billion pesos ($28.66 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 ($139.58 billion) to ease inflation by cutting revenue from low-cost power generators and making fossil fuel companies share windfall profits.

* Officials told Reuters that Italy agreed on September 16 a new aid package worth about 14 billion euros.

Germany may nationalize troubled gas import company Uniper, after it spent about 19 billion euros to support the company. On September 4, the government also announced a €65 billion package that includes an unexpected tax, an increase in benefits, and support for public transport.

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* Poland will spend more than 30 billion zlotys ($6.34 billion) to reduce energy costs and support businesses. It will also raise the minimum wage twice next year, adding to previously announced subsidies and mortgage relief.

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

* Britain will cap energy bills for consumers for two years and support businesses. The package is likely to cost more than 100 billion pounds ($114.02 billion).

* 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 offer billions of dollars in liquidity guarantees to electricity companies.

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

On August 3, France adopted a 20 billion euro bill raising pensions and some social welfare payments.

Asia:

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

* 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 has ordered district chiefs to keep food price inflation below 5%. In late August, the government agreed to reallocate 24.17 trillion rupees ($1.62 billion) from fuel subsidies to welfare spending.

* At least 10 Indian states have announced a total of more than 1 trillion rupees ($12.6 billion) in subsidies, mainly in cash transfers and electricity subsidies, officials said. The government also formed a committee to review the prices of locally produced gas.

* Malaysia expects to spend 77.3 billion ringgit ($17.05 billion) in subsidies and cash assistance this year.

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Africa and the Middle East:

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

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

* In early July, Saudi Arabia and the UAE raised their social welfare spending. The UAE doubled its financial support for low-income Emirati families, while Saudi Arabia allocated 20 billion riyals ($5.32 billion).

($1 = 1.3275 Canadian dollars)

(Dollar = 20.0655 Mexican Peso)

(1 dollar = 1.0030 euros)

(1 dollar = 4.7282 zlotys)

(dollar = 0.8770 pounds)

(dollar = 14,950.0000 rupees)

(dollar = 4.5330 ringgit)

(dollar = 3.7577 riyals)

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