Factbox-Government measures to ease the pain of inflation


Below is a list of some of the measures taken by governments to provide relief to hard-hit consumers and businesses:


* Canada announced C$4.5 billion ($3.39 billion) in measures, including a tax credit for low- and modest-income families and a one-time top-up to a benefit that helps low-income people income to pay their rent.

* The United States will help millions of debt-ridden former students by canceling $10,000 of their outstanding student loans, while the $430 billion “Cutting Inflation Act” unveiled in August aims to reduce prescription drug prices and to introduce tax credits to encourage energy efficiency.

* Brazilian oil giant Petrobras cut liquefied petroleum gas (LPG) prices by 4.73% for distributors. In early September, it slashed gasoline prices at the refinery gate by 7%, adding to the multiple cuts seen this year. In July, the government reduced fuel taxes and increased social benefits.

* In August, Mexican officials said inflation-fighting subsidies had already cost some 575 billion pesos ($28.66 billion) this year.

* Chile announced a $1.2 billion relief package in July that includes labor subsidies and one-time payments for those most affected.


* The European Union plans to raise more than 140 billion euros ($139.58 billion) to fight inflation by skimming revenues from low-cost electricity generators and sharing windfall profits with companies of fossil fuels.

* Italy on September 16 approved a new aid package worth some 14 billion euros, officials told Reuters.

* Germany could nationalize struggling gas importer Uniper after spending some 19 billion euros to prop up the company. The government also announced on September 4 a package of 65 billion euros including an exceptional tax, increases in benefits and subsidies for public transport.

* Poland will spend more than 30 billion zlotys ($6.34 billion) to reduce electricity costs and support businesses. It will also raise the minimum wage twice next year, on top of previously announced subsidies and mortgage relief.

* The Czech Republic will cap electricity and gas prices next year.

* Britain will cap consumer energy bills for two years and support businesses. The package will likely cost more than 100 billion pounds ($114.02 billion).

* Portugal reduced VAT on electricity and provided one-off payments for workers, families and pensioners.

* Spain will reduce gas VAT from 21% to 5% from October.

* Croatia will cap electricity prices from October 1 to March.

* Finland and Sweden will offer billions of dollars in liquidity guarantees to power companies.

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

* On August 3, France adopted a 20 billion euro bill abolishing pensions and certain social benefits.


* Thailand on September 13 extended a reduction in diesel tax and energy subsidies and raised the minimum wage.

* Japan will introduce another economic package in October, on top of a record minimum wage hike and a $103 billion relief bill unveiled in April.

* The Indonesian government has ordered regional chiefs to keep food inflation below 5%. In late August, the government agreed to reallocate 24.17 trillion rupees ($1.62 billion) from fuel subsidies to social spending.

* At least 10 Indian states have announced a total of more than 1 trillion rupees ($12.6 billion) in support, mostly in the form of cash transfers and electricity subsidies, officials said. The government has also set up a commission to review the pricing of locally produced gas.

* Malaysia plans to spend a record 77.3 billion ringgit ($17.05 billion) on grants and cash aid this year.


* South Africa announced at the end of July a reduction in fuel prices at the pump.

* In July, Turkey raised its minimum wage by around 30%, adding to the 50% rise seen at the end of last year.

* Saudi Arabia and the United Arab Emirates increased their social spending in early July. The United Arab Emirates has doubled its financial support for low-income Emirati families, while Saudi Arabia has allocated 20 billion riyals ($5.32 billion).

($1 = 1.3275 Canadian dollars)

($1 = 20.0655 Mexican pesos)

($1 = 1.0030 euros)

($1 = 4.7282 zlotys)

($1 = 0.8770 pounds)

($1 = 14,950.0000 rupees)

($1 = 4.5330 ringgit)

($1 = 3.7577 riyals)

(Compiled by Olivier Sorgho, Leika Kihara, Manoj Kumar, Ina Kreutz and Agnieszka Gosciak; Editing by Tomasz Janowski, Mark Potter and Emelia Sithole-Matarise)


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