Factbox-How governments are trying to ease impact of inflation

Reuters

(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:

* Brazil’s Senate approved raising the government spending cap, allowing the president-elect’s incoming administration to fund an extension of social welfare payments for poor families. Oil giant Petrobras has cut fuel prices multiple times this year.


* Argentina will raise the floor for income taxes in January. The government has agreed with major oil firms in the country to cap fuel price rises, and signed a deal with supermarkets and suppliers of mass consumer goods to freeze or tightly regulate prices of some 1,500 products.


* The U.S. government in November announced $4.5 billion in measures to lower home energy bills. The administration also unveiled the $430 billion Inflation Reduction Act in August.

* Mexico will raise the minimum wage by 20% next year after an agreement was reached between employers, labour representatives and the government.

* Canada in November laid out billions in spending to support low earners and offer students debt relief.

EUROPE:

* European Union energy ministers will try on Dec. 19 to reach a final agreement on a bloc-wide gas price cap.

* Germany’s lower house of parliament passed legislation worth an estimated 100 billion euros ($106 billion) to cap power and gas bills for households and industry from January. The government has agreed to nationalise gas importers Uniper and Sefe.

* The Czech government approved capping electricity and natural gas prices for large firms at the same level as prices for households and small firms that are already in place.

* Portugal will limit the rise in the regulated price of electricity next year to 3.3% for around 1 million households and small businesses.

* Slovakia’s parliament approved a special 90% tax on some electricity revenue to cover government aid to people struggling with energy bills. The government will spend 6 billion euros to cap energy prices for households next year.

* Spain’s cabinet in November approved mortgage relief for more than one million vulnerable households, and help for middle-class families.

* Italy’s government plans to spend some 21 billion euros next year to help households and firms with energy costs.

* Britain unveiled a scaled-back version of an existing cap on energy bills and said it would raise pensions and welfare benefits in line with inflation.

Related News:   New Restaurant Joins Brick Township's Business Tax Relief Program

* France is fully nationalising energy group EDF. The government will cap household power and gas price rises at 15% next year and is helping struggling small and mid-sized firms.

* Belarus banned consumer price rises from Oct. 6.

* Poland will cap electricity prices for small businesses, hospitals and households in 2023, and raise the minimum wage twice.

* Croatia has capped electricity prices until March.

ASIA-PACIFIC:

* Australia’s parliament approved legislation setting a price cap on natural gas for one year and providing A$1.5 billion ($1.00 billion) in relief for households and small businesses.

* Japan will spend $200 billion on a package including electricity and gasoline bill subsidies. It had already announced a record minimum wage hike and a $103 billion relief bill.

* Indonesia has extended loan forbearance for some businesses yet to recover from the COVID-19 pandemic. The government in September ordered regional heads to keep food inflation below 5%.

* The Philippines’ president has ordered agencies to continue supporting the most vulnerable sectors through cash aid and fuel discounts.

* Thailand has 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 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.

AFRICA AND MIDDLE EAST:

* The head of Israel’s parliamentary finance committee has submitted a bill that would limit banks’ ability to raise mortgage rates after central bank rate hikes.

* 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 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.

($1 = 0.9414 euros = 1.4943 Australian dollars)

(Reporting by Reuters bureaus; Compiled by Olivier Sorgho, Tristan Chabba and Anna Mackenzie; Editing by Jonathan Oatis)

You appear to be using an ad blocker

Shore News Network is a free website that does not use paywalls or charge for access to original, breaking news content. In order to provide this free service, we rely on advertisements. Please support our journalism by disabling your ad blocker for this website.