Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Factbox-Government measures to ease inflation pain

Published 10/21/2022, 07:26 AM
Updated 10/21/2022, 07:31 AM
© Reuters. Figurines are seen in front of displayed stock graph and word "Inflation" in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters - Pandemic-related disruptions 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:

* The United States is considering using the Strategic Petroleum Reserve to push down oil prices for consumers and support longer-term demand for producers, two sources familiar with the matter said. The administration has offered debt relief to former students, besides the $430 billion "Inflation Reduction Act".

* Brazil's oil giant Petrobras will cut natural gas prices for distributors in the country from November. It already cut fuel prices multiple times this year, while in July the government raised welfare payments.

* Argentina's government will from November raise the income tax threshold.

* 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.

* Canada announced a C$4.5 billion ($3.26 billion) relief package in September.

* Chile in July announced a $1.2 billion aid plan.

EUROPE:

* EU leaders backed proposals to launch an alternative price benchmark for liquefied natural gas and voluntary joint gas buying, but couldn't agree on a bloc-wide gas price cap.

* Germany plans to cap on electricity prices for households and industry. It has also set out a 200-billion-euro ($194.78 billion) "defensive shield" including a gas price break and in September agreed to nationalize gas importer Uniper.

* The Czech parliament has approved raising this year's budget deficit by a third as the government seeks more funding for inflation relief.

* Poland will cap electricity prices for small businesses, hospitals and households in 2023, and also raise the minimum wage twice.

* Portugal's electricity regulator will limit electricity price rises to 2.8% next year for hundreds of thousands of households and small businesses. The government has also cut VAT on electricity.

* Belarus banned consumer price rises from Oct. 6.

* Hungary extended a freeze on retail mortgage interest rates until the end of June.

* France is fully nationalising nuclear energy group EDF (EPA:EDF) and will cap household power and gas price increases at 15% next year.

* Ireland dipped into its surplus budget to fund an ease in energy costs.

* Denmark in September agreed on a 5.05 billion Danish crowns ($661.27 million) package.

* Britain is capping wholesale electricity and gas costs for businesses, and helping households.

* Greece will pay out a further 1.1 billion euros in power bill subsidies in October.

* Norway will spend 3 billion Norwegian crowns ($280.50 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.

* Spain slashed VAT on gas from October.

* Croatia has capped electricity prices until March.

* Finland and Sweden offered liquidity guarantees to power companies.

ASIA:

* The Philippines plans to start selling refined sugar to consumers at a fixed price.

* Japan will put together another package by end-October, having already announced a record minimum wage hike and a $103 billion relief bill.

* Thailand has 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 ($16.32 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.

* Tunisia's government has 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 = 1.3814 Canadian dollars)

($1 = 1.0268 euros)

($1 = 25.1720 Czech crowns)

($1 = 7.6368 Danish crowns)

© Reuters. Figurines are seen in front of displayed stock graph and word

($1 = 10.6950 Norwegian crowns)

($1 = 4.7360 ringgit)

Latest comments

Joke. Of an article
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.