Effects of inflation on the Government
2022.12.05 13:25
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Budrigannews.com – 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:
USA
* At the beginning of November, the government of the United States announced $4.5 billion in initiatives to assist Americans in lowering their energy bills at home. In addition, the $430 billion Inflation Reduction Act was introduced by the administration in August.
* Employers, labor representatives, and the government of Mexico reached an agreement that will result in a 20% increase in the minimum wage the following year.
* The “Bolsa Familia” welfare program and some public investments may be exempt from a constitutional spending cap, according to the transitional government of Brazil’s incoming president. This year, the oil tycoon Petrobras has reduced fuel prices multiple times.
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Major oil companies operating in Argentina agreed to limit fuel price increases.In addition, the government has raised the income tax threshold and entered into a contract with supermarkets and suppliers of mass-market goods to freeze or tightly regulate the prices of approximately 1,500 products.
* In November, Canada allocated billions of dollars to assist low-income individuals and alleviate student debt. A package valued at C$4.5 billion ($3.32 billion) was announced by the government in September.
EUROPE:
* Countries in the European Union are rushing to agree on a gas price cap by December 13. According to documents seen by Reuters, the members of the bloc are considering a gas price cap that is slightly lower than the one proposed by the European Commission.
* In November, a planned price cap for gas and electricity was quickly approved by Germany’s Cabinet.
The government has agreed to nationalize gas importers Uniper and Sefe and has outlined a “defensive shield” of 210.08 billion euros.
* Next year, Slovakia will spend 6 billion euros to limit household energy costs.
* The government of Hungary stated that information regarding whether the oil and gas group MOL can guarantee supply will determine whether or not the price cap on fuels will be extended next year.
* The two largest unions in Spain and the banks of Spain agreed to raise the wages of workers in the sector by 4.5 percent in 2023, compared to 2022. Additionally, mortgage relief measures for more than one million vulnerable households were agreed upon in principle by the government and banks.
* The government of Italy will spend approximately 21 billion euros next year to assist businesses and homes with energy costs.
* Britain announced that it would raise pensions and welfare benefits in line with inflation and unveiled a reduced version of the existing cap on energy bills.
* Nuclear energy company EDF is being completely nationalized by France (EPA:). The government is offering assistance to struggling small and medium-sized businesses by limiting price increases for gas and electricity to 15% next year.
* Beginning on October 6, Belarus prohibited increases in consumer prices.
* In 2023, Poland will cap the price of electricity for homes, small businesses, and hospitals, as well as raise the minimum wage twice.
* The regulator in Portugal will limit increases in the cost of electricity to 2.8 percent next year for hundreds of thousands of homes and small businesses.
* Until March, Croatia has set a price cap on electricity.
ASIA:
A package that includes subsidies for gasoline and electricity bills will cost Japan $200 billion. It had already announced a $103 billion relief bill and a record increase in the minimum wage.
* Some businesses that have not yet recovered from the COVID-19 pandemic have received an extension of loan forbearance from Indonesia. In September, the government told regional heads to keep food inflation below 5%.
* The Philippines’ leader has requested organizations to keep supporting the most weak areas through cash help and fuel limits.
* Thailand agreed on November 15 to extend a diesel excise tax cut until January 20.
* According to government sources, India is considering releasing wheat state reserves into the open market in order to reduce prices and eliminate the 40% import tax. It restricted rice exports in September to increase supply and stabilize local prices.
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