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 30/09/2022, 10:37 pm
Updated 30/09/2022, 10:45 pm
© Reuters. A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger

(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:

* U.S. President Joe Biden urged companies running gas stations, banks and cell phone services to lower consumer costs. In August, the government offered debt relief to former students and unveiled the $430 billion "Inflation Reduction Act".

* Mexico's president said he had agreed with companies to maintain prices of basic food items.

* Brazil's oil giant Petrobras cut fuel prices multiple times this year. In July, the government slashed fuel taxes and raised welfare payments.

* Canada on Sept. 13 announced a C$4.5 billion ($3.28 billion) relief package.

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

EUROPE:

* European Union countries agreed to impose emergency levies on energy firms' windfall profits and began talks on a possible bloc-wide gas price cap.

* Germany set out a 200-billion-euro ($195.18 billion) "defensive shield" which includes a gas price break and a cut in sales tax on the fuel. It also agreed earlier in September to nationalise gas importer Uniper and announced a 65-billion-euro package for consumers and businesses.

* Ireland dipped into one of Europe's few budget surpluses to fund higher-than-usual spending hikes and tax cuts, and ease energy costs.

* Hungary will probably be able to maintain a partial cap on household energy bills next year, Prime Minister Viktor Orban said.

* France is working on the full nationalisation of nuclear energy group EDF (EPA:EDF). It will also cap household power and gas price increases at 15% next year, and in August passed a 20-billion-euro relief bill.

* Denmark on Sept. 23 agreed on a package worth 5.05 billion Danish crowns ($662.88 million), adding to previous measures.

* Britain will cap wholesale electricity and gas costs for businesses at less than half the market rate. In September, it announced a plan to help households.

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

* Norway agreed to spend 3 billion Norwegian crowns ($277.77 million) to help businesses. It is also helping households with electricity bills.

* Italy on Sept. 16 approved a package worth some 14 billion euros.

* Poland will spend over 30 billion zlotys ($6.02 billion) to freeze power prices. It will also raise the minimum wage twice next year.

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

* Portugal cut VAT on electricity and provided one-off payments for workers, families, and pensioners.

* Spain will slash VAT on gas to 5% from 21%, from October.

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

* Finland and Sweden offered liquidity guarantees to power companies.

ASIA:

* Japan will help utilities secure liquefied natural gas amid a surge in spot prices. It is also due to present another package in October, adding 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. It has also set up a panel to review pricing of locally produced gas.

* 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 ($16.68 billion) in aid this year.

AFRICA AND MIDDLE EAST:

* Tunisia's government on Sept. 15 signed a deal with a major labour union to raise public sector pay and the minimum wage.

* Egypt on Aug. 30 announced a package to clear a backlog of goods in ports and help reduce commodity prices.

* South Africa in July announced a cut in the pump prices of fuel.

* 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 = 1.3721 Canadian dollars)

($1 = 1.0247 euros)

($1 = 7.6183 Danish crowns)

($1 = 10.8003 Norwegian crowns)

© Reuters. A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger

($1 = 4.9831 zlotys)

($1 = 4.6350 ringgit)

Latest comments

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.