Prime Minister Shigeru Ishiba announced on Friday a cash handout of ¥20,000 ($139) for every citizen — doubling it for children — to help households combat inflation ahead of the Upper House election in July.

The policy, with an estimated budget of more than ¥3 trillion, will be included in one of the ruling Liberal Democratic Party's campaign pledges for the high-stakes poll, Ishiba said.

The race is crucial for Ishiba after public support for his government tumbled to its lowest level since he took office in October, which local media say was partly caused by a surge in inflation and soaring rice costs.

"It's of urgent importance that we realize wage increases that can outpace inflation," Ishiba told reporters late Friday.

He pledged cash handouts of "¥20,000 for every citizen of Japan," and an additional ¥20,000 for children and those in lower-income households.

Inflation spiked to a two-year high in April, recent data showed, with rice prices almost doubling.

Core inflation excluding fresh food hit 3.5% in April, the internal affairs ministry said, its highest since January 2023 and well up from the 3.2% in March.

In announcing the handout policy, Ishiba staved off criticism of pork-barrel politics, claiming that it won't be financed by deficit bonds.

"We must prevent Japan's finances from being further worsened, and make sure future generations will not be be burdened," he said, vowing an "appropriate" source of funding.