Learn about measures to ease the pain of inflation around the world

The disruptions in global supply chains caused by the pandemic and the consequences of the war in Ukraine have combined to drive up prices for energy, commodities and basic necessities. Below is a list of some of the measures that governments have taken to support consumers and businesses who have been hit hard by these hardships.
America: The United States is helping millions of indebted former students by canceling $10,000 in loans, and the move follows the $430 billion “Inflation Reduction Act” unveiled last month that includes drug price cuts. Prescription and tax credits, to encourage energy efficiency.
Brazil: The Brazilian oil giant Petrobras announced on September 1 a 7% cut in gasoline prices, the fourth consecutive reduction in gasoline prices since mid-July. The Brazilian government in July also cut fuel taxes and increased welfare payments.
Mexico: Mexico’s president said earlier this month that his country’s government would meet to strengthen its anti-inflation plan. In August, officials said an anti-inflation support package aimed mainly at helping lower gasoline prices and domestic energy bills had already cost regarding 575 billion pesos ($29 billion) this year.
Chile: In July, Chile announced a $1.2 billion aid plan that includes employment support and $120 one-time payments for 7.5 million of its 19 million residents.
Britain: Britain will cap energy bills for consumers for two years, while allocating billions to support energy companies. The package, announced by new Prime Minister Liz Terrace on September 8, is likely to cost more than 100 billion pounds ($115 billion).
– Portugal: Portugal launched a €2.4 billion aid plan aimed at reducing the value-added tax on electricity to 6% from 13%, and provided one-time support payments to workers, families and retirees.
Croatia: Croatia will set a cap on electricity prices from October 1 to March.
Germany: Germany will spend at least 65 billion euros ($64.71 billion) to roll out a new package to protect consumers and businesses from the effects of inflation. The plan includes imposing taxes on exceptional profits for some companies, increasing social benefits and extending public transportation subsidies. Berlin had already announced tariffs on gas prices for consumers from October 1, while in July it approved a 15 billion euro ($15.05 billion) government bailout for Uniper, Germany’s largest gas importer.
– Spain: Reduce the value-added tax on gas to 5% from 21%, starting in October, to help families pay bills. The government also reduced the value-added tax on electricity twice over the past year to 5 percent.
Finland and Sweden: Allocating billions of dollars to ensure liquidity for energy companies in the two countries. The Swedish government said in August that it expected to allocate SEK 90 billion to help consumers pay record-high electricity bills.
Italy: Italy’s Cabinet Office said the government plans to spend at least an additional 6.2 billion euros ($6.2 billion) to help families and businesses. The bill will come on top of a package of regarding 52 billion euros that Rome has already budgeted this year, to cushion the impact of very high prices.
Denmark: Denmark in August imposed a maximum annual rent increase of 4 percent for the next two years. The move follows other relief measures, including a 3.1 billion kroner ($415.03 million) package announced in June.
France: On August 3, the French parliament adopted a bill for subsidies worth 20 billion euros, raising pensions and some social welfare payments, while also allowing companies to pay higher tax-free bonuses. In August, the government said it did not rule out a tax on exceptional corporate profits.
Poland: Poland agreed in August to a new package that includes subsidies for heating stations whose price increases will not exceed 40%, and cash transfers of 13.7 billion zlotys ($2.90 billion) to municipalities to help residents pay high energy bills. In July, the government introduced a relief plan for local currency mortgage holders.
South Africa: In late July, South Africa announced a reduction in fuel prices.
Turkey: In early July, Turkey raised the minimum wage by regarding 30%, in addition to the 50% increase at the end of last year.