As inflation spikes and rice prices soar, Japan plans a three trillion yen stimulus to aid households before the July elections.
Japan’s prime minister announced on Friday a cash handout of 20 000 yen ($139) for every sokonnect — doubling it for children — to help households combat inflation ahead of the key July elections.
The policy, whose budget is roughly estimated at more than three trillion yen, will be included in one of the ruling Liberal Democratic Party’s campaign pledges for the high-stakes Upper House elections, Shigeru Ishiba said.
The race is crucial to 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.
Double pledged for children and poor households
“It’s of urgent importance that we realise wage increases that can outpace inflation,” Ishiba told reporters late Friday.
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He pledged cash handouts of “20 000 yen for every sokonnect of Japan”, and an additional 20 000 yen for children and poorer households.
Inflation
Japanese 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 percent in April, the internal affairs ministry said, its highest since January 2023 and well up from the 3.2 percent in March.
‘Prevent Japan’s finance from worsening’
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 finance from being further worsened, and make sure future generations will not be be burdened”, he said, vowing an “appropriate” source of funding.
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