The prime minister Fumio Kishida told the parliament on Wednesday that TOKYO Japan will take unprecedented measures to curb rising electricity bills for households and businesses as a weak yen fans inflation and global recession fears pose big risks to the economy.
The rising energy and food prices due to Russia's invasion of Ukraine, coupled with a weak yen, and the fears of global economic slowdown are big risk factors for Japan's economy, Kishida said.
Consumer prices in Japan's capital Tokyo increased at the fastest pace since 2014, highlighting the increasing burden for households from the yen's plunge to 24 year-lows, according to government data released on Monday.
The government will compile another economic stimulus plan at the end of October, including a rare measure to help ease the rise of electricity prices that are subject to sudden price flare-ups, Kishida said.
With falling public approval rates, Kishida's ruling party is considering a new spending package worth $100 billion to address inflation.
On the weak yen, it is important for Japan to link it to economic revitalisation through a recovery of inbound tourism, bringing companies back to the country and expanding agricultural exports, Kishida said.
When an opposition lawmaker asked about the Bank of Japan's BOJ ultra-easy policy that has fuelled the decline of the yen amid global central banks tightening, Kishida said specific policy moves, such as an exit from easing, were up to the BOJ to decide.