Japan must swiftly consider economic stimulus measures amid rising prices, and will eventually need an extra budget, a close aide to Prime Minister Fumio Kishida said.
"If you look at the Japanese economy, the surge in oil prices and food prices means that an economic package is essential at some point,” Deputy Chief Cabinet Secretary Seiji Kihara said in an interview with Bloomberg at the Prime Minister's Office on Friday. "We can’t be slow. To be honest we have to think about it quickly.”
He added an extra budget would be needed, but that now was not the time. A majority of economists surveyed by Bloomberg expect Japan’s economy to shrink this quarter, as virus curbs and higher energy prices caused partly by the war in Ukraine hit consumers. The growing likelihood the economy may slip into reverse could amplify calls for more government stimulus.