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Factbox-Government measures to ease inflation pain
Published by Jessica Weisman-Pitts
Posted on September 22, 2022
4 min readLast updated: February 4, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on September 22, 2022
4 min readLast updated: February 4, 2026
(Reuters) – Pandemic-related disruption to global supply chains and the knock-on effects of Russia’s war in Ukraine have combined to drive up prices of energy, commodities and basic necessities.
(Reuters) – Pandemic-related disruption to global supply chains and the knock-on effects of Russia’s war in Ukraine have combined to drive up prices of energy, commodities and basic necessities.
Below is a list of some of the actions taken by governments aimed at offering relief to hard-hit consumers and companies:
AMERICAS:
* Brazil’s oil giant Petrobras has cut fuel prices multiple times this year. In July, the government slashed fuel taxes and raised social welfare payments.
* Mexico’s president will meet with food producers and distributors to potentially prevent price increases for 24 basic items. In August, officials said inflation subsidies had already cost some 575 billion pesos ($28.91 billion) this year.
* Canada on Sept. 13 announced a C$4.5 billion ($3.34 billion) package with a tax credit for families of low and modest incomes, and a one-time top-up to a benefit which helps low earners pay rent.
* The United States offered debt relief to former students, while the $430 billion “Inflation Reduction Act” unveiled in August aims to cut prescription drug prices and introduce tax credits to encourage energy efficiency.
* Chile in July announced a $1.2 billion aid plan including labour subsidies and one-time payments for those most affected.
EUROPE:
* The European Union plans to raise more than 140 billion euros ($138 billion) for inflation relief by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits.
* Britain will cap wholesale electricity and gas costs for businesses at less than half the market rate. A plan announced in September to help households is likely to cost north of 100 billion pounds ($113 billion).
* Germany agreed to nationalise gas importer Uniper. In early September, the government announced a 65-billion-euro-package for consumers and businesses.
* France is expected to launch its takeover of power group EDF by the end of September, sources said. It will also cap household power and gas price increases at 15% next year, and in August passed a 20-billion-euro relief bill.
* Greece will pay out a further 1.1 billion euros in power bill subsidies in October to households and businesses.
* Hungary extended price caps on fuels and basic foodstuff until the end of the year.
* Norway agreed to spend 3 billion Norwegian crowns ($290 million) to help businesses. It is also helping households with electricity bills.
* Italy on Sept. 16 approved a package worth some 14 billion euros.
* Poland will spend over 30 billion zlotys ($6.2 billion) to freeze power prices and support companies. It will also raise the minimum wage twice next year.
* The Czech Republic will cap electricity and gas prices next year.
* Portugal cut VAT on electricity and provided one-off payments for workers, families, and pensioners.
* Spain will slash VAT on gas to 5% from 21%, starting from October.
* Croatia will cap electricity prices from Oct. 1 until March.
* Finland and Sweden will offer liquidity guarantees to power companies.
* Denmark in August capped annual rent increases at 4% for the next two years, adding to previous measures.
ASIA:
* Thailand on Sept. 13 extended a diesel tax cut and energy subsidies and raised the minimum wage.
* India on Sept. 8 restricted exports of rice, looking to boost supply and calm local prices. It has also set up a panel to review pricing of locally produced gas.
* Japan will present another economic package in October, adding to a record minimum wage hike and a $103 billion relief bill unveiled in April.
* Indonesia’s government on Sept.14 ordered regional heads to keep food inflation below 5%. In August, the government agreed to reallocate 24.17 trillion rupiah ($1.61 billion) from fuel subsidies to welfare spending.
* Malaysia expects to spend a record 77.3 billion ringgit ($16.93 billion) in aid this year.
AFRICA AND MIDDLE EAST:
* Tunisia’s government on Sept. 15 signed a deal with a major labour union to raise public sector pay and the minimum wage.
* Egypt on Aug. 30 announced a package to clear a backlog of goods in ports and help reduce commodity prices.
* South Africa in July announced a cut in the pump prices of fuel.
* Botswana in July cut VAT by 2% for six months.
* Turkey in July increased 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 = 19.8916 Mexican pesos)
($1 = 1.3479 Canadian dollars)
($1 = 1.0140 euros)
($1 = 0.8846 pounds)
($1 = 10.3426 Norwegian crowns)
($1 = 4.8296 zlotys)
($1 = 80.8750 Indian rupees)
($1 = 15,015.0000 rupiah)
($1 = 4.5650 ringgit)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
Economic growth is the increase in the production of goods and services in an economy over a period of time, usually measured as the percentage increase in real Gross Domestic Product (GDP).
A financial crisis is a situation in which the value of financial institutions or assets drops significantly, leading to a loss of confidence in the stability of the financial system, often resulting in economic downturns.
Consumer protection refers to laws and regulations designed to ensure the rights of consumers are upheld, preventing businesses from engaging in unfair practices and ensuring product safety.
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