# Factbox-Governments act to ease inflation pain Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-31 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Global Governments' Actions to Tackle Soaring Prices Meta Description: Governments worldwide are taking steps to assist consumers and companies grappling with soaring energy and commodity prices amid global supply chain URL: https://financedigest.com/factbox-governments-act-to-ease-inflation-painhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-05t124051z1lynxmpei940o8rtroptp4usa-markets-credit-1-1736814945962-compressed.jpg) (Reuters) – Pandemic-related disruptions to global supply chains and the knock-on effects of Russia’s war in Ukraine have driven up prices of energy, commodities and basic necessities. Below is a list of actions taken by governments to try to help hard-hit consumers and companies: AMERICAS: \\* The United States is tapping its Strategic Petroleum [Reserve to boost oil supply and lower prices](https://www.financedigest.com/oil-prices-dip-on-u-s-crude-reserve-release-inflation-pressure.html "Oil prices dip on U.S. crude reserve release, inflation pressure"). The administration has also offered debt relief to former students, besides the $430 billion “Inflation Reduction Act”. \\* Canada’s competition [watchdog said it would examine](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") whether more competition in the grocery sector could help lower consumer costs. In September, the government announced a C$4.5 billion ($3.29 billion) package. \\* 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") will cut natural gas prices for distributors in the country from November. It has already cut fuel prices multiple [times this year](https://www.financedigest.com/30-years-of-excel-lence-time-to-move-on.html "30 YEARS OF EXCEL-LENCE: TIME TO MOVE ON?"), and in July the government raised welfare payments. \\* Argentina will from November raise the income tax threshold. \\* 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. \\* Chile in July announced a $1.2 [billion aid plan](https://www.financedigest.com/ikea-plans-new-u-s-stores-in-2-2-billion-push-to-challenge-walmart-and-wayfair.html "IKEA plans new U.S. stores in .2 billion push to challenge Walmart and Wayfair"). EUROPE: \\* European Union leaders backed proposals to launch an alternative [price benchmark for liquefied natural gas and voluntary joint gas buying](https://www.financedigest.com/4-for-the-price-of-1-what-you-can-buy-in-the-uks-top-northern-cities-for-the-price-of-a-london-pad.html "4 for the price of 1: What you can buy in the UK’s top northern cities for the price of a London pad"). The EU’s energy chief said the bloc could introduce a gas [price cap](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") this winter, but only if countries give Brussels a mandate to propose the measure. \\* Germany’s expert gas commission presented [proposals to the government for a gas price](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal") cap. The government has set out a 200-billion-euro ($197.86 billion) “defensive shield” and agreed to nationalise gas importer Uniper. \\* Slovakia will cap [energy prices](https://www.financedigest.com/ecb-survey-shows-rising-inflation-expectations-despite-energy-price-falls.html "ECB survey shows rising inflation expectations despite energy price falls") for companies in the first quarter of next year. \\* One [million employees in Belgium are expected to receive an automatic pay raise](https://www.financedigest.com/ride-hailing-app-cabify-raises-110-million-for-expansion-in-latam-spain.html "Ride-hailing app Cabify raises 0 million for expansion in LatAm, Spain") of 11.59% on Jan. 1, an HR services provider said. \\* Malta will maintain a price freeze on energy and [fuel](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") prices in 2023. \\* Hungary could extend the scope of [price caps on fuel and some basic food](https://www.financedigest.com/world-food-prices-hit-record-high-in-2022.html "World food prices hit record high in 2022") over coming weeks. \\* [France is fully nationalising nuclear](https://www.financedigest.com/france-seeks-strategy-as-nuclear-waste-site-risks-saturation-point.html "France seeks strategy as nuclear waste site risks saturation point") energy group EDF. The government will 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 help struggling small and mid-sized companies. \\* Belarus banned [consumer price rises](https://www.financedigest.com/factbox-how-far-are-uk-energy-bills-set-to-rise-and-what-help-are-consumers-getting.html "Factbox-How far are UK energy bills set to rise and what help are consumers getting?") from Oct. 6. \\* Poland will cap electricity prices for [small businesses](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners"), hospitals and households in 2023, and raise the minimum wage twice. \\* Portugal’s [regulator will limit electricity price rises to 2.8% next year for hundreds of thousands of households and small businesses](https://www.financedigest.com/2018-is-a-year-of-regulation-is-your-business-ready.html "2018 is a year of regulation – is your business ready?"). \\* Ireland dipped into its surplus budget to fund an ease in energy costs. \\* Denmark in September [agreed on a 5.05 billion](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources") Danish crowns ($671.33 million) package. \\* [Britain is capping 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, and helping households. \\* Norway provided [loans and subsidies to businesses](https://www.financedigest.com/types-of-business-loans.html "Types of business loans"), 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. \\* Spain cut VAT on gas from October, and introduced a package to help vulnerable households. \\* Croatia has capped electricity prices until March. \\* Finland and Sweden offered liquidity guarantees to power companies. ASIA: \\* Japan will spend $200 [billion on a package including electricity and gasoline 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"). It had already announced a record minimum wage hike and a $103 billion relief bill. \\* India said it will [sell wheat in the open market if “needed” to control prices](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"). In September it restricted exports of rice to [boost supply and calm local prices](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop"). \\* The Philippines plans to start [selling refined sugar to consumers at a fixed price](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price"). \\* Thailand in September extended a diesel tax [cut and energy](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") subsidies and raised the minimum wage. \\* 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%. AFRICA AND MIDDLE EAST: \\* Tunisia’s government has 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. ($1 = 1.3662 Canadian dollars) ($1 = 1.0108 euros) ($1 = 7.5224 Danish crowns) (Reporting by Reuters bureaus; compiled by Olivier Sorgho; Editing by Kirsten Donovan and Barbara Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---