Your current location is:{Current column} >>Text
Japan's Kishida vows measures to cushion blow from rising inflation By Reuters
{Current column}93148People have watched
IntroductionBy Leika KiharaTOKYO (Reuters) - Japanese Prime Minister Fumio Kishida pledged on Monday to compensa ...
By Leika Kihara
TOKYO (Reuters) - Japanese Prime Minister Fumio Kishida pledged on Latest exchange rate of US dollar to RMBMonday to compensate households for the rising cost of living with subsidies and payouts, stressing his government's resolve to pull the economy permanently out of stagnation.
Inflation, fuelled by rising costs of raw materials, has kept above the central bank's target of 2% for more than a year, weighing on consumption and clouding the outlook for an economy making a delayed recovery from the scars left by COVID-19.
With the rise in wages proving too slow to offset "rapidly rising prices", the government will cushion the blow by returning to households some of the expected increase in tax revenues generated by solid economic growth, Kishida said.
"We're seeing signs of change in an economy that had focused on cutting costs for three decades," he told an extraordinary session of parliament.
"To ensure this change takes hold, we must achieve sustained, structural wage increases and promote investment through private-public cooperation," Kishida added.
"I'm putting the highest priority on the economy."
While big firms have pledged pay hikes, inflation-adjusted real wages, a barometer of consumer purchasing power, fell 2.5% on the year in August for a 17th straight month of declines, as persistent price hikes outpaced salary growth.
In its effort, the government will extend until next spring subsidies adopted to curb costs of gasoline and utilities, Kishida said, adding that details of other measures would be finalised after discussions by a tax panel of his ruling party.
Such steps would be a temporary buffer to ensure Japan makes a complete exit from deflation, and will be accompanied by tax breaks for companies that boost wages and investment, Kishida said.
As rising inflation hurts the economy and his approval ratings, Kishida has unveiled plans to compile an economic stimulus package that could include a possible income tax cut.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!
Tags:
Related articles
First Republic set for 'imminent' government rescue: Reuters By
{Current column}--The U.S. Federal Deposit Insurance Corporation is set to place First Republic under receivership i ...
Read moreU.S. Treasury Secretary: Inflation will drop to the 2% target
{Current column}Bessent: Inflation Will Slow, Trump Administration Commits to Economic ReformU.S. Treasury Secretary ...
Read moreOPEC+ announces increase in production, bringing changes to the oil market.
{Current column}After U.S. President Trump called for lower oil prices, OPEC+, led by Saudi Arabia and Russia, annou ...
Read more
Popular Articles
- Harris heads to Tennessee after lawmakers expelled over gun protests By Reuters
- The Fed is cautious and not rushing to cut rates amid economic and inflation uncertainties.
- The US plans to introduce new tariffs, with April 2nd as a crucial date.
- U.S. trade deficit hits a new high in January as imports surge.
- Crude oil sharply lower; Chinese PMI adds to demand concerns By
- US core CPI slows in December; traders anticipate two Fed rate cuts by year
Latest articles
-
Yellen warns U.S. could default as soon as June 1 By
-
The US plans to introduce new tariffs, with April 2nd as a crucial date.
-
U.S. jobs rose in November, but unemployment increased, keeping a December rate cut possible.
-
Fed Rate Cut Outlook: Steady in First Half, Slowing in Second Half of Next Year
-
Meta Platforms delivers upbeat guidance as Q1 results top estimates; Shares soar By
-
AstroCryptoCapitals forced me to pay a $980 “account clearance payment”