# Factbox-How governments are trying to ease inflation pain
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-06
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Global supply chain disruptions and war in Ukraine drive up
Meta Description: Discover how governments in the Americas and Europe are taking steps to help consumers and companies cope with the impact of supply chain disruptions, war in
URL: https://financedigest.com/factbox-how-governments-are-trying-to-ease-inflation-painhtml

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(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 necessities.

Here’s how governments are trying to help hard-hit consumers and companies:

AMERICAS:

\\* The U.S. government in early November announced $4.5 [billion in measures to help Americans lower home energy](https://www.financedigest.com/petrofac-hitachi-energy-receive-14-billion-agreement-from-tennet.html "Petrofac, Hitachi Energy receive  billion agreement from TenneT") bills. The administration also [put forward the $430 billion Inflation](https://www.financedigest.com/boes-bailey-says-rate-setters-can-put-inflation-before-bank-worries.html "BoE’s Bailey says rate-setters can put inflation before bank worries") Reduction Act in August.

\\* Mexico will raise the minimum wage by 20% next year after an [agreement was reached](https://www.financedigest.com/adnami-signs-agreements-with-schibsted-and-amedia-to-deliver-high-impact-ads-with-unparalleled-reach-across-the-nordics.html "Adnami signs agreements with Schibsted and Amedia to deliver high impact ads with unparalleled reach across the Nordics") between employers, labour representatives and the government.

\\* The transitional [government of Brazil’s president-elect hopes to exempt the “Bolsa Familia” welfare program and some public investments from a constitutional spending](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") cap. The country’s oil giant Petrobras has [cut fuel prices multiple times this year](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year").

\\* Argentina agreed with major [oil firms](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") operating in the country to cap fuel price increases. The government has also signed a deal with supermarkets and suppliers of mass [consumer goods to freeze or tightly regulate prices](https://www.financedigest.com/analysis-to-raise-prices-or-not-consumer-goods-makers-weigh-bets-on-buyer-strength.html "Analysis-To raise prices or not? Consumer goods makers weigh bets on buyer strength") of some 1,500 products, and raised the income tax threshold.

\\* Canada in November laid out [billions in spending to support low earners and offer](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") students debt relief. In September, the government announced a C$4.5 billion ($3.32 billion) package.

EUROPE:

\\* European [Union countries are racing to reach a deal](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") on a gas price cap by Dec. 13. The bloc’s members are considering a slightly lower 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") than the one proposed by the European Commission, documents seen by Reuters showed.

\\* [Germany’s Cabinet in November approved a planned cap on gas and electricity](https://www.financedigest.com/germany-added-35-more-electric-car-charge-points-in-2022-says-bdew.html "Germany added 35% more electric car charge points in 2022, says BDEW") prices in an expedited process. The government has set out a 200 billion-euro ($210.08 billion) “defensive shield” and agreed to nationalise gas importers Uniper and Sefe.

\\* Slovakia will spend 6 billion [euros to cap energy 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") for households next year.

\\* Hungary’s [government said a potential extension of a price cap on fuels next year](https://www.financedigest.com/2016-must-be-the-year-of-board-level-transparency-and-good-governance.html "2016 must be the year of board level transparency and good governance") will depend on information whether oil and gas group MOL can ensure supply.

\\* [Spain’s banks and the country’s two biggest unions agreed to 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") wages of employees in the sector by 4.5% in 2023 compared with 2022. The government and banks also [agreed in principle on mortgage relief measures for more than 1 million](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") vulnerable households.

\\* Italy’s government will spend some 21 [billion euros next year to help firms and households with energy costs](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").

\\* Britain unveiled a scaled-back version of an existing cap on energy bills and announced it would [raise pensions and welfare benefits in line with inflation](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked").

\\* France 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"). The government will cap household power and gas [price increases at 15% next year](https://www.financedigest.com/hong-kong-home-prices-drop-15-6-in-2022-snap-13-years-of-gain.html "Hong Kong home prices drop 15.6% in 2022, snap 13 years of gain") and is helping struggling small and mid-sized companies.

\\* Belarus banned consumer [price rises](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") from Oct. 6.

\\* Poland will cap electricity prices for small businesses, hospitals and households in 2023, and raise the [minimum wage](https://www.financedigest.com/greece-to-increase-minimum-wage-again-before-election.html "Greece to increase minimum wage again, before election") 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/the-maserati-100-one-hundred-business-disruptors-challenging-the-establishment.html " ‘The Maserati 100’ One Hundred Business Disruptors Challenging The Establishment").

\\* Croatia has capped electricity prices until March.

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.

\\* Indonesia has extended loan forbearance for some [businesses that are yet to recover from the COVID-19 pandemic](https://www.financedigest.com/5-considerations-when-trying-to-grow-your-business-during-a-pandemic.html "5 Considerations When Trying to Grow Your Business During a Pandemic"). The [government in September ordered regional heads to keep food inflation](https://www.financedigest.com/governments-and-central-banks-risk-inflation-bank-of-england-has-done-its-bit-now-the-politicians-turn.html "Governments and central banks risk inflation, Bank of England has done its bit, now the politicians’ turn") below 5%.

\\* The Philippines’ president has ordered agencies to [continue supporting](https://www.financedigest.com/adnami-appoints-burnett-and-bukholt-to-support-continued-expansion.html "Adnami appoints Burnett and Bukholt to support continued expansion") the most vulnerable sectors through cash aid and fuel discounts.

\\* Thailand on Nov. 15 agreed to extend an excise tax cut on diesel until Jan. 20.

\\* [India is weighing up the release of wheat state reserves into the open](https://www.financedigest.com/india-opens-new-investigation-into-bbc-in-widening-crackdown.html "India opens new investigation into BBC in widening crackdown") market to cool prices while axing the 40% tax on imports, government sources said. In September it 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").

AFRICA AND MIDDLE EAST:

\\* Turkey in July raised the minimum wage by about 30%, adding to the 50% rise seen at the end of last year.

\\* Tunisia’s government in September signed a deal with a major labour union to raise [public sector](https://www.financedigest.com/guess-what-public-sector-adoption-of-e-invoicing-on-the-rise.html "GUESS WHAT? PUBLIC SECTOR ADOPTION OF E-INVOICING ON THE RISE!") pay and the minimum wage.

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

\\* 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 = 1.3572 Canadian dollars)

($1 = 0.9520 euro)

(Reporting by Reuters bureaus; Compiled by Olivier Sorgho and Tristan Chabba; Editing by Lisa Shumaker and Jonathan Oatis)


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