Prime Minister Fumio Kishida on Tuesday instructed his Cabinet ministers to compile a fresh economic package by the end of October, deploying "all possible tools" to mitigate the pain of inflation and support the economy with more pay hikes and investment.

Kishida, who places importance on wealth redistribution, told a Cabinet meeting that the government will "reduce tax and social security burdens on top of providing various benefits," at a time when Japan's fiscal health remains the worst among developed nations.

He also unveiled plans to review the use of emergency funds budgeted to cope with crises such as the pandemic and divert them for use in promoting sustained wage growth.