Japan is considering spending just over ¥20 trillion ($133 billion) on a new economic package aimed at helping households cope with accelerating inflation and rejuvenating the pandemic-hit tourism sector, sources familiar with the plan said Friday.

The country's demand remains weak even as the economy has emerged out of the initial COVID-19 fallout, and the slightly north of ¥20 trillion in government spending, to be finalized this month, is designed to boost it.

The Cabinet of Prime Minister Fumio Kishida is expected to make a formal decision next Friday so an extra budget to fund the package can be submitted to parliament, the sources said.