The Government of Japan will formally approve a stimulus plan this Friday, equivalent to 136 billion euros, to increase the purchasing power of consumersPrime Minister Shigeru Ishiba announced.
The package of measures, estimated at 22 billion yen and which must later be voted on by parliament, intended to stimulate growth economic situation of the country.
Japan’s economy grew for the second consecutive quarter, with an increase of 0.2% between July and September, driven by the recovery in consumption.
The plan is expected to include energy subsidies, direct aid to low-income families and tax adjustments, according to Japanese media.
consumption, which represents practically 60% of the economywas the main driver of Japanese gross domestic product growth in the last quarter, increasing 0.9%.
This after years of stagnation due to restrictions imposed during the covid-19 pandemicin addition to the reluctance of the Japanese to spend in the current context of lower wage growth and persistent inflation, which remains around 2%.
Japan’s consumer price index rose 2.3% year-on-year in October, the 38th consecutive month of growth for the indicator, which remains above the 2% target set by the Japanese central bank for 36 months.
According to data published this Friday by the statistics office of the Ministry of the Interior and Communications of Japan, Inflation slowed slightly last month.compared to the value of 2.4% registered in September.
Food prices, excluding fresh food due to high volatility, increased by 3.8% year-on-year, 0.7 percentage points higher than the previous month.
The largest increases were felt in the cost of cereals (13.5%), fruits (6.1%), meats (5%) and cakes and sweets (5%).
Energy costs increased by 3.2%, the softest year-on-year increase since April, with increases in electricity (4%) and gas (3.5%), unlike the prices of other fuels, including of automobiles, which fell 1.1% year-on-year. year after year.
Prices for leisure and entertainment activities increased an average of 4.2% year-on-year in October, with an increase of 5.5% in services linked to this industry.
Public transport was 0.8% more expensive in October than the previous month, while private transport cost 1.9% more.
Ishiba announced the plan to stimulate local media this Friday, less than a month after the coalition that supports him lost its parliamentary majority.
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Source: Observadora
