Japanese Prime Minister Shigeru Ishiba has directed his ministers to develop an economic relief package aimed at easing the burden of rising inflation on citizens. In his first policy speech to parliament on Friday, Ishiba emphasized the need for temporary support until the country establishes a sustainable economic growth cycle, driven by wage increases outpacing inflation and boosting capital expenditures.
“We need to support people suffering from rising costs right now until a positive growth cycle with wage increases outpacing inflation and driving capital expenditures is established,” Ishiba said.
The prime minister, recently elected head of Japan’s ruling party, also announced plans for a supplementary budget to fund the relief package, which will likely be formalized after the upcoming lower house elections set for October 27. The relief measures are expected to include subsidies for low-income households and larger grants to local governments.
Ishiba’s speech coincided with modest gains in Japan’s stock market, as the Nikkei 225 narrowed to 0.09% while the Topix rose by 0.36%. Meanwhile, the Japanese yen strengthened against the U.S. dollar, trading around 146.01. However, the speech was met with heckling from opposition members, highlighting the challenges ahead for Ishiba’s government as it navigates inflationary pressures and political hurdles.
