Japan: Economic package to fight inflation

SGGP 11/03/2023 09:28

On November 2, Japanese Prime Minister Fumio Kishida said the Japanese government will spend more than 17 trillion yen ($113 billion) on an economic package to reduce the impact of rising inflation.

Kishida said the 17 trillion yen includes temporary cuts in income and residence taxes as well as subsidies for gasoline and utilities. Inflation, driven in part by rising raw material costs, has been running above the Bank of Japan’s 2% target for more than a year, weighing on consumption and clouding the outlook for a post-Covid-19 recovery.

Rising living costs are partly to blame for Mr Kishida’s falling approval ratings, putting pressure on the prime minister to take steps to ease the burden on households. With wages rising too slowly to keep up with rising prices, Mr Kishida has said the government will ease the impact by returning some of the tax money to households.

Source: https://www.sggp.org.vn/nhat-ban-chi-goi-kinh-te-chong-lam-phat-post712560.html