Japan is set to allocate more than ¥2 trillion ($15.1 billion) in additional aid to ease the impact from high inflation ahead of local elections next month.
The outlays will come from reserve funds already budgeted for the fiscal year ending this month, economy minister Shigeyuki Goto told reporters Wednesday. The measures include handouts for low-income households and their children, and support for households that use liquefied petroleum gas, according to documents from the Cabinet Office.
The additional measures underscore the concern in Prime Minister Fumio Kishida’s ruling coalition over the impact on voters and firms from the strongest inflation in four decades. Economists say the longer-term impact from the measures on prices and Bank of Japan policy is likely to be limited.