Japanese Prime Minister Kishida promises new measures to deal with rising fuel and food prices

TOKYO, Aug 12 (Reuters) – Japanese Prime Minister Fumio Kishida said on Friday he would ask his government to come up with additional measures to cushion the economic blow from rising energy and food prices.

Kishida said he would release the order at a meeting of a government panel on Monday that will discuss measures to help retailers and households cope with the rising cost of living.

“I will order additional and transparent measures to be taken focusing on energy and food prices, which constitute the bulk of the recent rise in inflation,” Kishida told reporters.

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Coping with the rising cost of living has become one of Kishida’s top policy priorities to support consumption and ensure Japan’s economy recovers sustainably from the damage of the pandemic.

Although much more subdued than in other advanced countries, consumer inflation in Japan exceeded the central bank’s 2% target for three consecutive months in June, mainly due to higher fuel prices. and world raw materials. Read more

After reshuffling his cabinet on Wednesday, Kishida told a news conference that the government would tap reserves for the time being to pay for the extra measures.

But he also said the government was ready to take further action if inflation continued to rise, which could hint that a supplementary budget could be compiled later this year to cushion the blow to the economy. .

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Reporting by Yoshifumi Takemoto and Leika Kihara; Editing by Edwina Gibbs

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