Japanese Prime Minister Fumio Kishida announced a spending of 17 trillion yen in a stimulus package to soften the impact of rising inflation on its economy. The measure will include temporary cuts to income and residential taxes as well as subsidizing gasoline and utility bills.
Inflation of the world’s third largest economy remained at 3% in September, which was higher than the Bank of Japan’s target of 2% for more than a year that put pressure on consumption.
The PM said that to fund part of the spending, the Japanese government will compile a supplementary budget for the current fiscal year of 13.1 trillion yen.
