Factbox: How gov’ts are trying to ease impact of inflation

A person shops in a supermarket as inflation affected consumer prices in Manhattan, New York City, U.S., June 10, 2022. REUTERS/Andrew Kelly

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.

* 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)