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Factbox-Government measures to ease inflation pain

Published 09/16/2022, 09:02 AM
Updated 09/16/2022, 09:06 AM
© Reuters. FILE PHOTO: Genreal view of electricity pylons and power lines leading from the Uniper coal power plant in Hanau, Germany, early morning November 23, 2016.   REUTERS/Kai Pfaffenbach

(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.

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* 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.

* 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.

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* 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)

Latest comments

Cancelling student debt does not help inflation.
Forgot to mention bad goverment policies as the cause of inflation. Unnecesary printed dollars out to thecstreey for those unnecesary relief package approved by congress and President. More money and less product means high inflation. I 3rd grader knows that
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