How are countries dealing with inflation and rising living costs?

DUBLIN: Inflation and rising living costs are putting pressure on countries all over the world, leading them to announce various measures to combat it. Global supply issues related to the Covid pandemic, as well as the impact of the Ukraine war, have driven up the prices of energy, commodities, and basic materials worldwide.

The eurozone is also in crisis, with inflation reaching a record high of 8.9 percent in July. Following this, the central banks of each country, including the ECB, raised interest rates. Various governments have also come up with action plans to support families struggling to meet daily living expenses.

Germany imposes gas price levy

Germany plans to introduce a gas price levy for all consumers from October 1. Tax breaks were introduced on petrol and diesel, cutting public transport costs.

France with a €20 billion package

In France, the government announced a €20 billion inflation-relief package. The government has also decided to provide higher tax-free bonus payments to companies to boost the purchasing power of households.

€17 billion aid package for Italy

Italy has approved an aid package of €17 billion. The government has already spent €35 billion to reduce the cost of electricity, gas, and petrol.

Brazil lowers petrol prices

President Jair Bolsonaro and the Brazilian government are pressuring state-owned Petrobras to lower petrol prices. The company had announced two special price cuts in July.

India restricts exports and imports

India imposed restrictions on exports of food items including wheat and sugar. Tax on edible oil has also been reduced.

Japan with a $103 billion package

Japan announced a $103 billion (€101 billion) relief package in April to deal with the economic blow from rising commodity prices. These include subsidies to control petrol prices and help for low-income families with children.

Saudi Arabia increased social welfare allocation

Saudi Arabia and the United Arab Emirates announced in early July that they would increase spending on social welfare.  UAE has doubled financial assistance for low-income families. King Salman of Saudi Arabia allocated 20 billion riyals for this.

Turkey increased minimum wage by more than 30%

The Turkish government raised the minimum wage by more than 30 percent in early July to help those struggling with the cost of living. The move came after inflation in the country hit a 24-year high at 79.6 percent.