The government decided Friday on a new relief package to cope with accelerating inflation, featuring a ¥50,000 ($350) cash handout program for low-income households and steps to keep gasoline and imported wheat prices at current levels.
Prime Minister Fumio Kishida also instructed officials to draw up a more comprehensive economic package next month, as economists expect slower growth for the world's third-largest economy due to higher import prices, largely blamed on Russia's war in Ukraine and a relentless drop in the yen.
The decision comes at a critical time for Kishida as he faces one of the biggest challenges during his roughly 10 months in office — falling public support amid scrutiny over a state funeral for the late former Prime Minister Shinzo Abe and the ruling party's ties with the controversial Unification Church.