# Factbox-Government measures to ease inflation pain
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Global Supply Chain Disruption: Government Relief Actions
Meta Description: Learn how countries like Brazil, Mexico, and the US are implementing measures to help consumers and businesses cope with inflation and cost increases.
URL: https://financedigest.com/factbox-government-measures-to-ease-inflation-pain-5html

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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:

\\* Brazil’s [oil giant Petrobras has cut fuel](https://www.financedigest.com/oil-spills-and-near-misses-more-ghost-tankers-ship-sanctioned-fuel.html "Oil spills and near misses: more ghost tankers ship sanctioned fuel") prices multiple times this year. In July, the government slashed fuel taxes and raised social welfare payments.

\\* Mexico’s president will meet with food producers and distributors to potentially prevent [price 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") for 24 basic items. In August, [officials said inflation subsidies had already cost some 575 billion](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official") pesos ($28.91 billion) this year.

\\* Canada on Sept. 13 announced a C$4.5 billion ($3.34 billion) package with a [tax credit](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official") 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 offered debt relief to former students, while the $430 billion [“Inflation Reduction Act” unveiled in August aims to cut prescription drug prices](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") and introduce tax credits to encourage energy efficiency.

\\* Chile in July [announced a $1.2 billion aid plan](https://www.financedigest.com/eu-announces-plans-to-lead-green-industrial-revolution.html "EU announces plans to lead green industrial revolution") including labour subsidies and one-time payments for those most affected.

EUROPE:

\\* The European Union plans to raise more than 140 billion euros ($138 billion) for [inflation relief by skimming off revenues from low-cost electricity generators and making fossil fuel firms share](https://www.financedigest.com/shares-rise-but-concern-mounts-over-inflation-flare-up.html "Shares rise, but concern mounts over inflation flare-up") windfall profits.

\\* [Britain will cap wholesale electricity and gas costs](https://www.financedigest.com/britain-delays-major-rail-project-hs2-as-costs-soar-again.html "Britain delays major rail project HS2 as costs soar again") for businesses at less than half the market rate. A plan announced in September to help households is likely to cost north of 100 [billion pounds](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") ($113 billion).

\\* Germany agreed to nationalise gas importer Uniper. In early September, the government announced a 65-billion-euro-package for [consumers and businesses](https://www.financedigest.com/citigroup-says-will-close-russian-consumer-commercial-business.html "Citigroup says will close Russian consumer, commercial business").

\\* France is [expected to launch](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") its takeover of power group EDF by the end of September, sources said. It will also cap household power and gas [price increases](https://www.financedigest.com/taylor-wimpey-espana-remain-cautiously-optimistic-as-average-selling-price-increases-by-20-4.html "Taylor Wimpey España ‘remain cautiously optimistic’ as average selling price increases by 20.4%") at 15% next year, and in August passed a 20-billion-euro relief bill.

\\* Greece will pay out a further 1.1 billion euros in power [bill subsidies in October to households](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") and businesses.

\\* Hungary extended [price caps on fuels and basic foodstuff until the end](https://www.financedigest.com/uk-house-prices-end-2022-on-a-weaker-note-after-pandemic-boom.html "UK house prices end 2022 on a weaker note after pandemic boom") of the year.

\\* Norway agreed to [spend 3 billion](https://www.financedigest.com/chipmaker-infineon-ready-to-spend-billions-on-acquisitions-ceo.html "Chipmaker Infineon ready to spend billions on acquisitions – CEO") Norwegian crowns ($290 million) to help businesses. It is also helping [households with electricity](https://www.financedigest.com/funds-from-electricity-levy-could-help-german-households-says-renewables-association.html "Funds from electricity levy could help German households, says renewables association") bills.

\\* Italy on Sept. 16 [approved a package worth some 14 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.

\\* Poland will spend over 30 billion zlotys ($6.2 billion) to freeze power prices and support companies. It will also raise the minimum wage twice next year.

\\* The Czech Republic will [cap electricity and gas prices](https://www.financedigest.com/eu-meets-to-try-to-break-gas-price-cap-impasse.html "EU meets to try to break gas price cap impasse") next year.

\\* Portugal cut VAT on electricity and provided one-off [payments for workers](https://www.financedigest.com/taking-the-pain-out-of-payments-for-the-21st-century-worker.html "TAKING THE PAIN OUT OF PAYMENTS FOR THE 21ST CENTURY WORKER"), families, and pensioners.

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

\\* Croatia will [cap electricity prices](https://www.financedigest.com/g7-finance-chiefs-agree-on-russian-oil-price-cap-but-level-not-yet-set.html "G7 finance chiefs agree on Russian oil price cap but level not yet set") from Oct. 1 until March.

\\* Finland and Sweden will offer liquidity guarantees to power companies.

\\* Denmark in August capped annual rent increases at 4% for the next two years, adding to previous measures.

ASIA:

\\* Thailand on Sept. 13 extended a diesel [tax cut and energy](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") subsidies and raised the minimum wage.

\\* India on Sept. 8 restricted exports of rice, looking to boost [supply and calm local prices](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries"). It has also [set up a panel to review pricing](https://www.financedigest.com/unicredit-sets-out-8-billion-aid-package-for-italy-clients-hit-by-surging-prices.html "UniCredit sets out  billion aid package for Italy clients hit by surging prices") of locally produced gas.

\\* Japan will present another economic package in October, adding to a record minimum wage hike and a $103 [billion relief bill unveiled 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’s [government on Sept.14 ordered regional heads to keep food inflation](https://www.financedigest.com/factbox-how-governments-are-trying-to-ease-inflation-pain.html "Factbox-How governments are trying to ease inflation pain") below 5%. In August, the [government agreed to reallocate 24.17 trillion](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report.html "European governments spend half a trillion euros on energy crisis – report") rupiah ($1.61 billion) from fuel subsidies to welfare spending.

\\* Malaysia expects to spend a record 77.3 billion ringgit ($16.93 billion) in aid this year.

AFRICA AND MIDDLE EAST:

\\* Tunisia’s government on Sept. 15 signed a [deal with a major labour union](https://www.financedigest.com/french-uber-drivers-to-earn-more-than-8-per-ride-after-union-deal.html "French Uber drivers to earn more than  per ride after union deal") 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](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 July announced a cut in the pump prices of fuel.

\\* Botswana in July cut VAT by 2% for six months.

\\* Turkey in July [increased its minimum wage](https://www.financedigest.com/greece-to-increase-minimum-wage-again-before-election.html "Greece to increase minimum wage again, before election") 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](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares").

($1 = 19.8916 Mexican pesos)

($1 = 1.3479 Canadian dollars)

($1 = 1.0140 euros)

($1 = 0.8846 pounds)

($1 = 10.3426 Norwegian crowns)

($1 = 4.8296 zlotys)

($1 = 80.8750 Indian rupees)

($1 = 15,015.0000 rupiah)

($1 = 4.5650 ringgit)


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