Factbox-Government measures to ease inflation pain
[html](Reuters) – Pandemic-related disruptions to global supply chains and the knock-on effects of Russia’s war in Ukraine have co*bined to drive up…
(Reuters) – Pandemic-related disruptions to global supply chains and the knock-on effects of Russia’s war in Ukraine have co*bined to drive up prices of energy, co*modities and basic necessities.
Below is a list of some of the actions taken by governments aimed at offering relief to hard-hit consumers and co*panies:
AMERICAS:
* U.S. President Joe Biden in September urged co*panies running gas stations, banks, and cell phone services to lower consumer costs. The government has also offered debt relief to former students and unveiled the $430 billion “Inflation Reduction Act”.
* Mexico reached a deal with foodmakers and retailers to waive some regulatory requirements to halt rising food prices. The president also said the size of a planned minimum wage hike in 2023 would depend on inflation.
* Brazil’s oil giant Petrobras has cut fuel prices multiple times this year. In July, the government slashed fuel taxes and raised welfare payments.
* Canada announced a C$4.5 billion ($3.31 billion) relief package in September.
* Chile in July announced a $1.2 billion aid plan.
EUROPE:
* European co*mission President Ursula von der Leyen will impress upon EU leaders the need for a gas price cap, adding to emergency levies on energy firms’ windfall profits agreed in September.
* France expects a new clawback on power co*panies’ revenues to generate up to 7 billion euros ($6.94 billion) to help struggling firms. The government is fully nationalising nuclear energy group EDF and will cap household power and gas price increases at 15% next year.
* Germany set out a 200-billion-euro “defensive shield” including a gas price break and is renationalising gas importer Uniper.
* Ireland dipped into one of Europe’s few budget surpluses to fund spending hikes and tax cuts, and ease energy costs.
* Hungary is likely to maintain a partial cap on household energy bills next year.
* Denmark in September agreed on a package worth 5.05 billion Danish crowns ($6.67 million), adding to previous measures.
* Britain will cap wholesale electricity and gas costs for businesses at less than half the market rate, as well as offering help to households.
* Greece will pay out a further 1.1 billion euros in power bill subsidies in October.
* Norway will spend 3 billion Norwegian crowns ($283.64 million) in loans and subsidies to businesses, and is supporting households with electricity bills.
* Italy in September approved a package worth some 14 billion euros.
* Poland will spend more than 30 billion zlotys ($6.18 billion) to freeze power prices, and raise the minimum wage twice next year.
* The Czech Republic will cap electricity and gas prices next year.
* Portugal cut VAT on electricity.
* Spain slashed VAT on gas from October.
* Croatia capped electricity prices from Oct. 1 until March.
* Finland and Sweden offered liquidity guarantees to power co*panies.
ASIA:
* Japan will pull together another package by end-October, including directly easing rising electricity prices, Prime Minister Fumio Kishida said. The announcement adds to a record minimum wage hike and a $103 billion relief bill unveiled in April.
* 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 to boost supply and calm local prices.
* 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 ($16.70 billion) in aid this year.
AFRICA AND MIDDLE EAST:
* South Africa cut the petrol pump price from Oct. 5, adding to a previous cut announced in July.
* Algeria will subsidize fertilizer prices by 50%, Ennahar TV reported.
* Tunisia’s government on Sept. 15 signed a deal with a major labour union to raise public sector pay and the minimum wage.
* 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 = 1.3592 Canadian dollars)
($1 = 1.0084 euros)
($1 = 7.4993 Danish crowns)
($1 = 10.5769 Norwegian crowns)
($1 = 4.8508 zlotys)
($1 = 4.6290 ringgit)
(co*piled by Olivier Sorgho; Editing by Kirsten Donovan)
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