Pandemic-related disruption to global supply chains and the knock-on effects of Russia’s war in Ukraine have combined to drive up the prices of energy, raw materials and basic necessities.
Below is a list of some of the measures taken by governments to provide relief to hard-hit consumers and businesses:
AMERICA:
* The United States will help millions of former students in debt by canceling $10,000 of their outstanding student loans. The move follows the $430 billion “Inflation Reduction Act” unveiled earlier this month, which includes cuts in prescription drug prices and tax cuts to encourage energy efficiency.
* Brazilian oil giant Petrobras announced a nearly 5% cut in gasoline prices in mid-August, the third cut in less than a month. In July, the government cut fuel taxes and increased social security benefits.
* Chile announced a $1.2 billion relief plan in July, including labor subsidies and one-off payments of $120 for 7.5 million of its 19 million residents.
EUROPE:
* Denmark capped annual rent increases for the next two years at 4% at the end of August. The move follows previous support measures, including a package of Danish krone 3.1 billion ($418.34 million) announced in June.
* Germany will introduce a gas price levy for consumers from October 1. In July, Berlin approved a state aid of 15 billion euros ($15.05 billion) from Uniper, the country’s largest importer of Russian gas. It had also cut excise taxes on fuel and lowered the cost of public transport, but these measures will expire from September.
* The French parliament passed a €20 billion emergency law on August 3, eliminating pensions and some social benefits, while also allowing companies to pay higher bonuses tax-free. In late August, the government said it was not ruling out a windfall for businesses.
* Italy approved about 17 billion euros in aid on August 4. The legislation aims to cut electricity and gas bills and comes on top of the €35 billion budgeted since January to mitigate the impact of rising energy costs.
* Poland approved a new package, which includes subsidies for heating installations whose price will not exceed 40%, and a money transfer of 13.7 billion zloty ($2.91 billion) for municipalities to help residents with rising energy bills. The country had also introduced an exemption scheme for local currency mortgage holders in July.
ASIA:
* Japan’s average minimum wage is set at a record 3.3% increase for the year ending March 2023. The government will also refrain from raising the price of imported wheat it sells to retailers, as part of a planned broader help package. The moves follow a $103 billion bill passed in April.
* Indonesia will allocate 24.17 trillion rupiah ($1.63 billion) of its fuel subsidy budget to social spending, including cash benefits to 20.65 million households. The government will also order regional governments to subsidize transport fares.
* India in May imposed restrictions on exports of foodstuffs, including wheat and sugar, which make up nearly 40% of the consumer price index, and cut taxes on edible oil imports.
AFRICA AND MIDDLE EAST:
* South Africa announced a cut in fuel pump prices at the end of July.
* Saudi Arabia and the United Arab Emirates increased their social security spending in early July. The UAE doubled its financial aid to low-income Emirati families, while King Salman of Saudi Arabia ordered the allocation of 20 billion riyals ($5.33 billion).
* Turkey raised its minimum wage by about 30% in early July, contributing to the 50% increase at the end of last year.
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