# Factbox-Government measures to ease inflation pain Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-05 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global Actions to Curb Rising Energy and Commodity Prices Meta Description: Governments worldwide are taking actions to curb the effects of supply chain disruptions and the Ukraine conflict on energy and commodity prices. Read more URL: https://financedigest.com/factbox-government-measures-to-ease-inflation-pain-6html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-05t124051z1lynxmpei940o8rtroptp4usa-markets-credit-1736815098679-compressed.jpg) (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 in September urged companies running gas stations, banks, and cell phone services to [lower consumer costs](https://www.financedigest.com/bmw-bets-on-design-and-recycling-not-mining-to-lower-battery-costs.html "BMW bets on design and recycling, not mining, to lower battery costs"). The government has also [offered debt relief to former students and unveiled the $430 billion](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") “Inflation Reduction Act. \\* Mexico reached a [deal with foodmakers and retailers to waive some regulatory requirements to halt rising](https://www.financedigest.com/u-s-mid-tier-lenders-shares-rise-in-frankfurt-after-svb-deal.html "U.S. mid-tier lenders shares rise in Frankfurt after SVB deal") food prices. The president also said the size of a planned [minimum wage](https://www.financedigest.com/greece-to-increase-minimum-wage-again-before-election.html "Greece to increase minimum wage again, before election") hike in 2023 would depend on inflation. \\* 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 welfare payments. \\* Canada announced a C$4.5 billion ($3.31 billion) relief package in September. \\* 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"). EUROPE: \\* European Commission President Ursula von der Leyen will impress upon EU leaders the need for a gas price cap, adding to emergency levies on energy [firms’ windfall profits](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit") agreed in September. \\* [France expects a new clawback on power](https://www.financedigest.com/france-strains-to-avert-power-cuts-as-cold-snap-tests-europes-energy-resolve.html "France strains to avert power cuts as cold snap tests Europe’s energy resolve") companies’ revenues to generate up to 7 billion euros ($6.94 billion) to help struggling firms. The government is fully nationalising [nuclear energy group EDF](https://www.financedigest.com/uks-competition-watchdog-to-examine-edf-buying-ges-nuclear-turbine-unit.html "UK’s competition watchdog to examine EDF buying GE’s nuclear turbine unit") and will cap household power and gas price increases at 15% next year. \\* Germany set out a 200-billion-euro “defensive shield” [including a gas price break and is renationalising gas importer Uniper](https://www.financedigest.com/uniper-sells-uae-marine-fuels-refinery-to-consortium-including-montfort.html "Uniper sells UAE marine fuels refinery to consortium including Montfort"). \\* Ireland dipped into one of [Europe’s few budget](https://www.financedigest.com/how-to-travel-europe-on-a-budget.html "How to travel Europe on a budget") surpluses to fund spending hikes and tax cuts, and ease energy costs. \\* Hungary is likely to maintain a partial cap on [household energy 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") next year. \\* Denmark in September agreed on a package [worth 5.05 billion](https://www.financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billions.html "Why A Quiet Revolution In The Cloud Is Worth Billions") Danish crowns ($6.67 million), adding to previous measures. \\* [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, as well as offering help to households. \\* Greece will pay out a further 1.1 [billion euros in power bill subsidies](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") in October. \\* Norway will [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 ($283.64 million) in loans and subsidies to businesses, and is supporting households with electricity bills. \\* Italy in September [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 more than 30 billion](https://www.financedigest.com/dutch-to-spend-16-billion-to-cushion-effects-of-inflation-media.html "Dutch to spend billion to cushion effects of inflation -media") zlotys ($6.18 billion) to freeze power prices, and 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. \\* Spain slashed VAT on gas from October. \\* Croatia capped [electricity prices](https://www.financedigest.com/swedish-energy-minister-need-to-decouple-gas-from-electricity-price.html "Swedish energy minister: need to decouple gas from electricity price") from Oct. 1 until March. \\* [Finland and Sweden](https://www.financedigest.com/finland-sweden-to-send-teams-to-turkey-to-discuss-nato-bids-haavisto-says.html "Finland, Sweden to send teams to Turkey to discuss NATO bids, Haavisto says") offered liquidity guarantees to power companies. ASIA: \\* Japan will pull together another package by end-October, including directly [easing rising electricity 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"), Prime Minister Fumio Kishida said. The announcement adds 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"). \\* Vietnam [plans to cut the special consumption tax](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") and VAT on fuels. \\* 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 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"). \\* 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%. \\* Malaysia expects to spend a record 77.3 billion ringgit ($16.70 billion) in aid this year. 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") cut the petrol pump price from Oct. 5, adding to a previous cut announced in July. \\* Algeria will subsidize fertilizer prices by 50%, Ennahar TV reported. \\* 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. \\* 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](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares"). ($1 = 1.3592 Canadian dollars) ($1 = 1.0084 euros) ($1 = 7.4993 Danish crowns) ($1 = 10.5769 Norwegian crowns) ($1 = 4.8508 zlotys) ($1 = 4.6290 ringgit) (Compiled by Olivier Sorgho; Editing by Kirsten Donovan) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---