Fumio Kishida, the Prime Minister of Japan, has recently announced that he would direct his administration to devise further steps to lessen the economic impact caused by rising energy and food costs.

PM Kishida stated that he will give the instruction at a government group meeting this week to discuss ways to assist companies and individuals manage rising living expenditures.

As food and energy costs account for the majority of the recent increase in inflation, Kishida will demand additional, seamless efforts to be done.

In a government meeting, Kishida stated that price increases, notably for energy and food products, are severely affecting businesses and consumers. He further stated that he will provide instructions to authorities this week to smoothly execute relief measures.

One of Kishida's main policy tasks to support consumption and guarantee Japan's economy recovers sustainably from the effects of the pandemic is dealing with growing living expenses.

Japan's consumer inflation, albeit far lower than that of other developed nations, surpassed the central bank's 2% target for three consecutive months in June, mostly as a result of rising gasoline and global raw material prices.

Kishida said at a press conference this week that the government will temporarily use reserves to pay for the extra procedures after rearranging his cabinet.

However, he added that the government is prepared to take more steps if inflation keeps rising, which may be a signal that a second budget may be created later this year to help the economy recover from the hit.

Costs of raw materials and crude oil have increased to keep up with rising demand as countries recover from the coronavirus pandemic and as a result of interruptions in the global supply chain. In Japan, the cost of imported goods has increased as a result of the yen's decline in value in comparison to the US dollar and other major currencies.

The third-largest economy in the world has been struggling due to increased prices for food, raw materials, and energy, which are mostly triggered by Russia's conflict in Ukraine.

Source Credit: https://money.usnews.com/investing/news/articles/2022-08-11/japan-pm-kishida-pledges-new-steps-to-deal-with-rising-fuel-food-prices