Japan PM to order govt to start work on inflation measures

Japan’s prime minister will order the government on Tuesday to compile emergency measures by the end of April to deal with the impact of the rising prices of oil and other goods, fanned by the Ukraine crisis.

Prime Minister Fumio Kishida, responding in parliament to a query from a lawmaker from coalition partner the Komeito party on whether another an extra fiscal budget was an option, suggested money set aside for the campaign against Covid-19 could be tapped.

“The priority is prompt use of Covid-19 reserve funds,” Kishida said, adding he would take into account the allied party’s opinions in drawing up measures.

Komeito’s leader, Natsuo Yamaguchi, in an interview with Reuters on Friday emphasised the need to top up fiscal support by compiling a fresh supplementary budget in addition to 5.5 trillion yen ($44.17 billion) reserves in the fiscal 2022 budget.

In tandem with Kishida’s upcoming order to government staff, his ruling Liberal Democratic Party (LDP) will also start discussions on measures to protect households from rising prices, LDP Secretary-General Toshimitsu Motegi told a news conference.