Factbox-Government measures to ease the pain of inflation


(Reuters) – Pandemic-related disruption to global supply chains and the ripple effects of Russia’s war in Ukraine have combined to drive up prices for energy, raw materials and commodities. first necessity.

Below is a list of some of the measures taken by governments to provide relief to hard-hit consumers and businesses:

* Canada announced C$4.5 billion ($3.39 billion) in measures, including a tax credit for low- and modest-income families and a one-time top-up to a benefit that helps low-income people income to pay their rent.

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

* Brazilian oil giant Petrobras cut liquefied petroleum gas (LPG) prices by 4.73% for distributors. In early September, it slashed gasoline prices at the refinery gate by 7%, adding to the multiple cuts seen this year. In July, the government reduced fuel taxes and increased social benefits.

* In August, Mexican officials said inflation-fighting subsidies had already cost some 575 billion pesos ($28.66 billion) this year.

* Chile announced a $1.2 billion relief package in July that includes labor subsidies and one-time payments for those most affected.

* The European Union plans to raise more than 140 billion euros ($139.58 billion) to fight inflation by skimming revenues from low-cost electricity generators and sharing windfall profits with companies of fossil fuels.

* Italy on September 16 approved a new aid package worth some 14 billion euros, officials told Reuters.

* Germany could nationalize struggling gas importer Uniper after spending some 19 billion euros to prop up the company. The government also announced on September 4 a package of 65 billion euros including an exceptional tax, increases in benefits and subsidies for public transport.

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

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

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

* Portugal reduced VAT on electricity and provided one-off payments for workers, families and pensioners.

* Spain will reduce gas VAT from 21% to 5% from October.

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

* Finland and Sweden will offer billions of dollars in liquidity guarantees to power companies.

* In August, Denmark capped annual rent increases at 4% for the next two years, adding to previous measures.

* On August 3, France adopted a 20 billion euro bill abolishing pensions and certain social benefits.

* Thailand on September 13 extended a reduction in diesel tax and energy subsidies and raised the minimum wage.

* Japan will introduce another economic package in October, on top of a record minimum wage hike and a $103 billion relief bill unveiled in April.

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

* At least 10 Indian states have announced a total of more than 1 trillion rupees ($12.6 billion) in support, mostly in the form of cash transfers and electricity subsidies, officials said. The government has also set up a commission to review the pricing of locally produced gas.

* Malaysia plans to spend a record 77.3 billion ringgit ($17.05 billion) on grants and cash aid this year.

* South Africa announced at the end of July a reduction in fuel prices at the pump.

* In July, Turkey raised its minimum wage by around 30%, adding to the 50% rise seen at the end of last year.

* Saudi Arabia and the United Arab Emirates increased their social spending in early July. The United Arab Emirates has doubled its financial support for low-income Emirati families, while Saudi Arabia has allocated 20 billion riyals ($5.32 billion).

($1 = 1.3275 Canadian dollars)

($1 = 20.0655 Mexican pesos)

($1 = 14,950.0000 rupees)

(Compiled by Olivier Sorgho, Leika Kihara, Manoj Kumar, Ina Kreutz and Agnieszka Gosciak; Editing by Tomasz Janowski, Mark Potter and Emelia Sithole-Matarise)

Copyright 2022 Thomson Reuters.


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