Factbox - Government measures to ease inflation pain
Reuters
Published Sep 16, 2022 13:57
(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:
* Canada announced C$4.5 billion ($3.39 billion) in measures including a tax credit for families of low and modest incomes, and a one-time top-up to a benefit which helps low earners pay rent.
* The United States will help millions of indebted former students by cancelling $10,000 of their outstanding student loans, while the $430 billion "Inflation Reduction Act" unveiled in August aims to cut prescription drug prices and introduce tax credits to encourage energy efficiency.
* Brazil's oil giant Petrobras cut prices of liquefied petroleum gas (LPG) by 4.73% for distributors. In early September it slashed refinery gate gasoline prices by 7% adding to multiple cuts seen this year. In July, the government cut fuel taxes and raised social welfare payments.
* In August, Mexican officials said inflation-combating subsidies have already cost some 575 billion pesos ($28.66 billion) this year.
* Chile in July announced a $1.2 billion aid plan including labour subsidies and one-time payments for those most affected.
EUROPE:
* The European Union plans to raise more than 140 billion euros ($139.58 billion) for inflation relief by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits.
* Italy on Sept. 16 approved a new aid package worth some 14 billion euros, officials told Reuters.
* Germany may nationalize struggling gas importer Uniper after spending some 19 billion euros propping up the company. The government on Sept. 4 also announced a 65-billion-euro package containing a windfall tax, benefit hikes and public transport subsidies.
* Poland will spend over 30 billion zlotys ($6.34 billion) to curb power costs and support companies. 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 consumer energy bills for two years and support companies. The package is likely to cost over 100 billion pounds ($114.02 billion).
* Portugal reduced 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.
* Finland and Sweden will offer billions of dollars in liquidity guarantees to power companies.
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* Denmark in August capped annual rent increases at 4% for the next two years, adding to previous measures.
* France on Aug. 3 adopted a 20-billion-euro bill lifting pensions and some welfare payments.
ASIA:
* Thailand on Sept. 13 extended a diesel tax cut and energy subsidies and raised the minimum wage.
* Japan will present another economic package in October, adding to a record minimum wage hike and a $103 billion relief bill unveiled in April.
* Indonesia's government ordered regional heads to keep food inflation below 5%. In late August, the government agreed to reallocate 24.17 trillion rupiah ($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) of support, mainly in cash transfers and electricity subsidies, officials said. The government has also set up a panel to review the pricing of locally produced gas.
* Malaysia expects to spend a record 77.3 billion ringgit ($17.05 billion) in subsidies and cash aid this year.
AFRICA AND MIDDLE EAST:
* South Africa in late July announced a cut in the pump prices of fuel.
* Turkey in July increased 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 early July raised their social welfare spending. The UAE doubled financial support to low-income Emirati families, while Saudi Arabia allocated 20 billion riyals ($5.32 billion).
($1 = 1.3275 Canadian dollars)
($1 = 20.0655 Mexican pesos)
($1 = 1.0030 euros)
($1 = 4.7282 zlotys)
($1 = 0.8770 pounds)
($1 = 14,950.0000 rupiah)
($1 = 4.5330 ringgit)
($1 = 3.7577 riyals)
Written By: Reuters
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