Japan oks $200b spending plan to face inflation

Japan on Friday approved a hefty economic package that will include about 29 trillion yen ($200 billion) in government spending to soften the burden of rising utility rates and food prices.  

Globally surging prices and a weakening of the yen have amplified costs for imports, pushing inflation higher, reports AP.

The stimulus package includes subsidies for households that are largely seen as an attempt by Prime Minister Fumio Kishida to lift his plunging popularity. His government has been rocked by the ruling Liberal Democratic Party’s close ties to the South Korean-based Unification church, which surfaced after the assassination of former leader Shinzo Abe in July.  

At a news conference Kishida said, “The economic measures are designed to overcome rising prices and to achieve an economic recovery.”  

Any market reaction to another flood of stimulus was likely already taken into account earlier in the week as share prices fell in Tokyo, with the benchmark Nikkei 225 losing 0.9 per cent to 27,105.20.

Japan has stuck to using fiscal measures, or government spending, to counter current economic challenges.

Bd-pratidin English/Golam Rosul