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Factbox-Government measures to ease inflation pain

Economy Sep 14, 2022 07:07AM ET
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3/3 © Reuters. FILE PHOTO: Shadows of students of Georgetown University class of 2020 are seen on a wall, who did not get their proper graduation due to coronavirus disease (COVID-19) pandemic, as they meet at the steps of the Lincoln Memorial and onward to a location f 2/3

(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 ($3.4 billion) in measures including a tax credit for families of low and modest incomes, and a one-time top-up to a benefit that 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 will cut prices of liquefied petroleum gas (LPG) by 4.73% for distributors. Earlier this month 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-combatting subsidies have already cost some 575 billion pesos ($28.76 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 ($140 billion) by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits.

* Germany may nationalize struggling gas importer Uniper, Bloomberg reported. Berlin in July agreed a 15-billion-euro bailout of the company. The government this month also announced a 65-billion-euro package containing a windfall tax, benefit hikes and public transport subsidies.

* Poland will raise its minimum wage twice next year and plans to freeze electricity prices for households consuming less energy. In August, it approved subsidies for heating plants and cash for municipalities, while in July it introduced a relief scheme for holders of local currency mortgages.

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

* Britain will cap consumer energy bills for two years and prop up power companies. The package is likely to cost over 100 billion pounds ($116 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%, after already cutting VAT on electricity twice over the past year.

* Croatia will cap electricity prices from Oct. 1 until March.

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

* Italy plans to spend at least an additional 6.2 billion euros on relief.

* Denmark in August capped annual rent increases at 4% for the next two years. In June it put forward a 3.1 billion Danish crown ($417 million) package.

* France on Aug. 3 adopted a 20-billion-euro bill lifting pensions and some welfare payments.

ASIA:

* Thailand extended a diesel tax cut and energy subsidies and raised the minimum wage.

* Japan will present another economic package in October, adding to previous measures including a record minimum wage hike. A $103 billion relief bill was also passed in April.

* Indonesia's government ordered regional heads to keep food inflation below 5%. In August, the government decided 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 formula of locally produced gas. In May it restricted some food exports and cut taxes on imports of edible oil.

* Malaysia expects to spend a record 77.3 billion ringgit ($17.08 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 fuels.

* 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).

* Turkey in early July increased its minimum wage by about 30%, adding to the 50% rise seen at the end of last year.

($1 = 1.3168 Canadian dollars)

($1 = 19.9921 Mexican pesos)

($1 = 0.9995 euros)

($1 = 0.8650 pounds)

($1 = 7.4268 Danish crowns)

($1 = 14,905.0000 rupiah)

($1 = 79.4150 Indian rupees)

($1 = 4.5250 ringgit)

($1 = 3.7585 riyals)

Factbox-Government measures to ease inflation pain
 

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