Pandemic-related disruptions to global supply chains and the effects of Russia’s war in Ukraine have driven up prices of energy, commodities and other necessities.
Here’s how governments are trying to help hard-hit consumers and companies:
AMERICAS:
* The U.S. will subject 27 drugs to inflation penalties, reducing out-of-pocket costs for Medicare recipients by as much as $390 per dose. The Inflation Reduction Act penalises drugmakers if they charge prices that rise faster than inflation for people on Medicare.
* Brazil’s president in February said the minimum wage will be raised to 1,320 reais ($264) a month from the current level of 1,302 reais, starting in May. Congress in December approved a constitutional amendment increasing the spending cap to maintain welfare payouts to poor families in 2023.
* Mexico has raised the minimum wage by 20% for 2023. In March it opened the door to imported Brazilian bovine products for the first time as it looks to diversify its food supply to try to curb inflation.
* Colombia raised the minimum wage by 16% for 2023.
EUROPE:
* The European Commission will extend its gas price cap system to all trading hubs in the European Union from May. EU countries agreed on the cap in December.
* Germany in April agreed a wage deal under which around 2.5 million public sector workers will receive 3,000 euros ($3,300) in tax-free payments in instalments through to February 2024. The government last year introduced electricity and gas price caps.
* France raised the minimum wage from May by 2.19%. The government in March reached a deal with the country’s main supermarket chains to help shoppers cope with food prices.
* Italy in March approved measures worth almost 5 billion euros ($5.48 billion) to cut energy bills for families and firms. Rome has earmarked over 21 billion euros in its 2023 budget to soften energy costs.
* Portugal also in March announced a package to help low-income families, including scrapping value added tax (VAT) on essential food products.
* Greece raised the minimum wage from April 1, the third hike in more than a year.
* Ireland in February announced funding to help households and extended a temporary lower VAT rate for the hospitality sector through the summer season.
* Spain raised the minimum wage from January by 8%.
* The Czech government in December approved raising the minimum monthly wage by 6.8% from 2023.
* The Swedish government last year announced fuel tax cuts and boosted welfare.
ASIA-PACIFIC:
* Pakistan in April capped the retail price rise in essential drugs at 14%.
* India in March lifted the inflation-adjusted allowance for federal government employees by 4%.
* Top Japanese companies in March agreed to their largest pay increases in a quarter of a century at annual labour talks, heeding Prime Minister Fumio Kishida’s call for higher wages.
* The government has allocated more than 2 trillion yen ($14.67 billion) from reserve funds in the current budget to try to limit inflation.
* Thailand in March agreed to extend an excise tax cut on diesel to July 20.
* The Philippines in December extended lower tariff rates on rice and other food items up to the end of 2023.
AFRICA AND MIDDLE EAST:
* Morocco’s government in April adopted a decree cancelling the value-added tax on agricultural inputs.
* The majority of South Africa’s public sector unions in late March agreed to a 7.5% wage increase after five months of strike action. The two-year, multi-term deal is significantly higher than what the government had factored into its 2023 budget.
* Israel’s government in early March reached a wage deal with its main public sector labour union. The deal covers some 350,000 civil servants, offering 11% raises between 2020 and 2027, as well as a one-time grant.
* Turkey in December raised the monthly minimum wage for 2023 by 55% from the level determined in July.
($1 = 5.0036 reais)
($1 = 0.9086 euros)
($1 = 136.3200 yen)
