# Factbox-Government measures to ease inflation pain
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Global Supply Chain Disruption Driving up Prices: Relief
Meta Description: Discover how governments in the Americas, Europe, and Asia are offering relief to consumers and businesses amidst the global supply chain disruptions and
URL: https://financedigest.com/factbox-government-measures-to-ease-inflation-pain-3html

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(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 last 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](https://www.financedigest.com/shell-chevron-and-petrobras-weigh-guyana-oil-auction-bids-sources.html "Shell, Chevron and Petrobras weigh Guyana oil auction bids -sources") on Sept. 1 announced a 7% [cut in refinery gate gasoline prices](https://www.financedigest.com/tesla-cuts-u-s-model-s-and-model-x-prices-between-4-and-9.html "Tesla cuts U.S. Model S and Model X prices between 4% and 9%"), its fourth consecutive gasoline price reduction since mid-July. 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:

\\* Germany will [spend at least 65 billion euros](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros") on a new package shielding consumers and businesses from inflation. The [plan includes a windfall tax](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds"), benefit hikes and extending subsidies on public transport. Berlin had already announced its planned gas [price levy on consumers](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") from Oct. 1, while in July, it [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.

\\* Spain will cut value-added tax (VAT) on gas to 5% from 21% from October to help [households with utility bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero"). The government also reduced VAT on [electricity twice over the past year](https://www.financedigest.com/vw-to-speed-up-electric-shift-in-five-year-plan.html "VW to speed up electric shift in five-year plan") to 5%.

\\* Finland and Sweden will [offer billions](https://www.financedigest.com/copper-miner-teck-resources-rejects-glencores-22-5-billion-offer.html "Copper miner Teck Resources rejects Glencore’s .5 billion offer") of dollars in liquidity guarantees to power companies in their respective countries. Sweden’s government in August said it expected to have 90 billion [Swedish crowns](https://www.financedigest.com/dollar-edges-down-from-six-week-peak-swedish-crown-jumps.html "Dollar edges down from six-week peak, Swedish crown jumps") available to help consumers with record electricity prices.

\\* Italy is preparing a fresh multi-billion [euro package to help shield firms and families from inflation](https://www.financedigest.com/euro-zone-inflation-eases-in-feb-but-core-prices-pick-up.html "Euro zone inflation eases in Feb but core prices pick up"). The bill would come on top of around 52 [billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") which Rome has already budgeted this year to soften the impact of sky-high electricity, gas and petrol prices.

\\* Denmark in 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.

\\* 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.

\\* 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](https://www.financedigest.com/revealed-1-45-million-tonnes-of-e-waste-is-produced-by-households-businesses-per-annum.html "Revealed: 1.45 million tonnes of e-waste is produced by households & businesses per annum"). The government will also instruct regional administrations to subsidise transport fares.

\\* India in May [imposed restrictions](https://www.financedigest.com/chinas-covid-resurgence-spurs-new-curbs-foxconn-imposes-restrictions.html "China’s COVID resurgence spurs new curbs, Foxconn imposes restrictions") on exports of food items including wheat and sugar, which account for nearly 40% of the consumer price index, and cut taxes on imports of edible oil.

\\* Malaysia is expected to spend a record 77.3 billion ringgit ($17.25 billion) in subsidies and cash aid this year to temper the effects of [rising prices](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh").

AFRICA AND MIDDLE EAST:

\\* [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)

($1 = 4.4820 ringgit)

(Compiled by Olivier Sorgho, Leika Kihara, Manoj Kumar, Ina Kreutz and Agnieszka Gosciak; Editing by Alison Williams and Hugh Lawson)


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