# Factbox-Government measures to ease inflation pain Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-30 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global Relief Efforts: How Governments are Easing Costs Amid Meta Description: Discover how governments worldwide are offering relief to consumers amidst soaring energy and commodity prices. From student loan forgiveness to aid packages, URL: https://financedigest.com/factbox-government-measures-to-ease-inflation-pain-2html (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: \\* The United States will help millions of indebted former students by cancelling $10,000 of their outstanding [student loans](https://www.financedigest.com/student-loans-hurting-workers-ability-to-save-for-retirement.html "STUDENT LOANS HURTING WORKERS’ ABILITY TO SAVE FOR RETIREMENT"). The move follows the $430 billion “Inflation Reduction Act” unveiled earlier this month, which includes cuts to prescription [drug prices](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") and tax credits to encourage energy efficiency. \\* Brazil’s [oil giant Petrobras in mid-August announced a nearly 5% cut on gasoline prices](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain"), its third cut in less than a month. The government in July [cut fuel taxes and raised](https://www.financedigest.com/ecb-raises-interest-rates-again-cuts-bank-subsidies.html "ECB raises interest rates again, cuts bank subsidies") social welfare payments. \\* Chile in July announced a $1.2 billion [aid plan including labour subsidies and one-time payments of $120 for 7.5 million](https://www.financedigest.com/wizz-air-loses-fight-against-67-million-in-state-aid-for-romanian-rival.html "Wizz Air loses fight against million in state aid for Romanian rival") of its 19 million residents. EUROPE: \\* Denmark in late August capped [annual rent increases](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") at 4% for the next two years. The move follows earlier relief measures, including a 3.1 billion Danish crown ($418.34 million)package announced in June. \\* [Germany will introduce a gas price levy on consumers](https://www.financedigest.com/germany-to-lower-sales-tax-on-gas-to-7-in-bid-to-relieve-consumers.html "Germany to lower sales tax on gas to 7% in bid to relieve consumers") from Oct. 1. In July, Berlin [agreed a 15-billion euro](https://www.financedigest.com/iag-agrees-to-buy-80-stake-in-air-europa-for-400-million-euros.html "IAG agrees to buy 80% stake in Air Europa for 400 million euros") ($15.05 billion) state bailout of Uniper, the country’s largest importer of Russian gas. It had also [cut fuel taxes and slashed public transport costs](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis"), but these measures are set to expire from September. \\* France’s parliament on Aug. 3 adopted a 20 billion euro relief bill, lifting pensions and some welfare payments, while also allowing [companies to pay higher bonuses tax](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies") free. In late August, the [government said it did not rule](https://www.financedigest.com/italys-rightist-government-tightens-rules-for-migrant-rescues.html "Italy’s rightist government tightens rules for migrant rescues") out a windfall tax on companies. \\* Italy on Aug. 4 [approved about 17 billion](https://www.financedigest.com/australian-court-approves-bhps-6-4-billion-oz-minerals-takeover.html "Australian court approves BHP’s .4 billion OZ Minerals takeover") euros in aid. The legislation aims to [cut electricity and gas bills and adds to about 35 billion euros budgeted](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") since January to soften the impact of soaring energy costs. \\* Poland approved a new package, which includes [subsidies for heating plants](https://www.financedigest.com/intel-wants-5-billion-more-in-german-subsidies-for-chip-plant-bloomberg-news.html "Intel wants billion more in German subsidies for chip plant – Bloomberg News") whose price increases will not exceed 40%, and a 13.7 billion zloty ($2.91 billion) cash transfer for municipalities to help residents with soaring energy bills. The country had also in July introduced a relief scheme for holders of local currency mortgages. ASIA: \\* Japan’s average [minimum wage is set for a record 3.3% increase](https://www.financedigest.com/greece-to-increase-minimum-wage-again-before-election.html "Greece to increase minimum wage again, before election") for the year ending March 2023. The government is also due to refrain from raising the [price of imported wheat it sells](https://www.financedigest.com/3-tricks-to-get-a-better-price-when-selling-your-car.html "3 Tricks To Get a Better Price When Selling Your Car") to retailers, as part of a planned broader relief package. The steps follow a $103 [billion bill passed in April](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3"). \\* Indonesia will reallocate 24.17 trillion rupiah ($1.63 billion)of its fuel subsidy budget towards welfare spending, including cash handouts to 20.65 million households. The [government will also instruct regional](https://www.financedigest.com/imf-amf-afesd-and-government-of-morocco-to-host-regional-conference-opportunity-for-all-promoting-growth-jobs-and-inclusiveness-in-the-arab-world.html "IMF, AMF, AFESD and Government of Morocco To Host Regional Conference: “Opportunity for All—Promoting Growth, Jobs, and Inclusiveness in the Arab World”") administrations to subsidise transport fares. \\* India in May imposed restrictions on exports of food items including wheat and sugar, which account for nearly 40% of the [consumer price](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") index, and cut taxes on imports of edible oil. [AFRICA AND MIDDLE EAST:](https://www.financedigest.com/eseye-collaborates-with-solarnow-and-amazon-web-services-to-help-bring-solar-energy-to-remote-regions-in-east-africa.html "Eseye Collaborates with SolarNow and Amazon Web Services to Help Bring Solar Energy to Remote Regions in East Africa") \\* [South Africa](https://www.financedigest.com/inmobi-and-coca-cola-win-mma-smarties-south-africa-award-for-beat-can-campaign.html "InMobi and Coca-Cola Win MMA SMARTIES South Africa Award for Beat Can Campaign") 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](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares"). The UAE doubled financial support to low-income Emirati families, while [Saudi Arabia’s King](https://www.financedigest.com/saudi-arabias-king-crown-prince-send-condolences-on-queen-elizabeths-death.html "Saudi Arabia’s king, crown prince send condolences on Queen Elizabeth’s death") Salman ordered the allocation of 20 billion riyals ($5.33 billion). \\* Turkey in early July [increased its minimum wage](https://www.financedigest.com/ita-airways-averts-strike-after-wage-increase-accord-with-unions.html "ITA Airways averts strike after wage increase accord with unions") by about 30%, adding to the 50% rise seen at the end of last year. ($1 = 14,840.0000 rupiah) ($1 = 7.4103 Danish crowns) ($1 = 4.7145 zlotys) ($1 = 3.7552 riyals) ($1 = 0.9965 euros) (Compiled by Olivier Sorgho, Leika Kihara, Manoj Kumar, Ina Kreutz and Agnieszka Gosciak; Editing by Alison Williams and) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---