Inflation Reduction Act overview

In August 2022, the government of the United States (U.S.) passed the Inflation Reduction Act (IRA), a climate, tax, and spending act extensively viewed as one of the highest investment acts in the country’s history. The package aims to address inflation in two ways: by lowering energy and health care costs and by helping to bring down the country’s deficit.

Inflation has been hitting most countries in the world since 2020. This inflation growth began due to the pandemic and was further exacerbated by the conflict between Russia and Ukraine, which started in February 2022. High energy prices are one of the main drivers of prolonged inflation this year.

The Act implements provisions to fight inflation, invest in domestic energy production and manufacturing, an