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.

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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 โ‚ฌ65 billion package that includes an unexpected tax, an increase in benefits, and support for public transport.

* 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.

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* 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.

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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