Factbox-Government measures to ease inflation pain
Reuters
Published Sep 27, 2022 09:10AM ET
(Reuters) - Pandemic-related disruption to global supply chains and the knock-on effects of Russia's war in Ukraine have combined to drive up prices of energy, commodities and basic necessities.
Below is a list of some of the actions taken by governments aimed at offering relief to hard-hit consumers and companies:
AMERICAS:
* U.S. President Joe Biden urged companies running gas stations, banks and cell phone services to lower consumer costs. In August, the government offered debt relief to former students and unveiled the $430 billion "Inflation Reduction Act".
* Mexico's president said he had agreed with companies to maintain prices of basic food items.
* Brazil's oil giant Petrobras cut fuel prices multiple times this year. In July, the government slashed fuel taxes and raised welfare payments.
* Canada on Sept. 13 announced a C$4.5 billion ($3.29 billion) relief package.
* Chile in July announced a $1.2 billion aid plan.
EUROPE:
* The European Union plans to raise more than 140 billion euros ($134.93 billion) for inflation relief by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits.
* France is in the process of fully nationalising power group EDF (EPA:EDF). It will also cap household power and gas price increases at 15% next year, and in August passed a 20-billion-euro relief bill.
* Denmark on Sept. 23 agreed on a package worth 5.05 billion Danish crowns ($654.85 million), adding to previous measures.
* Britain will cap wholesale electricity and gas costs for businesses at less than half the market rate. In September, it announced a plan to help households.
* Germany agreed to nationalise gas importer Uniper. In early September, the government announced a 65-billion-euro-package for consumers and businesses.
* Greece will pay out a further 1.1 billion euros in power bill subsidies in October to households and businesses.
* Hungary extended price caps on fuels and basic foodstuff until the end of the year.
* Norway agreed to spend 3 billion Norwegian crowns ($279.69 million) to help businesses. It is also helping households with electricity bills.
* Italy on Sept. 16 approved a package worth some 14 billion euros.
* Poland will spend over 30 billion zlotys ($6.07 billion) to freeze power prices and support companies. It will also raise the minimum wage twice next year.
* The Czech Republic will cap electricity and gas prices next year.
* Portugal cut VAT on electricity and provided one-off payments for workers, families, and pensioners.
* Spain will slash VAT on gas to 5% from 21%, starting from October.
* Croatia will cap electricity prices from Oct. 1 until March.
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* Finland and Sweden will offer liquidity guarantees to power companies.
ASIA:
* China will release its fourth batch of pork reserves for the month this week to cool prices.
* Vietnam plans to cut the special consumption tax and VAT on fuels.
* Thailand on Sept. 13 extended a diesel tax cut and energy subsidies and raised the minimum wage.
* India on Sept. 8 restricted exports of rice. It has also set up a panel to review pricing of locally produced gas.
* Japan will present another package in October, adding to a record minimum wage hike and a $103 billion relief bill unveiled in April.
* Indonesia's government on Sept.14 ordered regional heads to keep food inflation below 5%.
* Malaysia expects to spend a record 77.3 billion ringgit ($16.77 billion) in aid this year.
AFRICA AND MIDDLE EAST:
* Tunisia's government on Sept. 15 signed a deal with a major labour union to raise public sector pay and the minimum wage.
* Egypt on Aug. 30 announced a package to clear a backlog of goods in ports and help reduce commodity prices.
* South Africa in July announced a cut in the pump prices of fuel.
* Botswana in July cut VAT by 2% for six months.
* Turkey in July raised its minimum wage by about 30%, adding to the 50% rise seen at the end of last year.
* Saudi Arabia and the United Arab Emirates in July raised social welfare spending.
($1 = 1.3684 Canadian dollars)
($1 = 1.0376 euros)
($1 = 7.7117 Danish crowns)
($1 = 0.9256 pounds)
($1 = 10.7263 Norwegian crowns)
($1 = 4.9399 zlotys)
($1 = 4.6090 ringgit)
Written By: Reuters
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