Japan to take unprecedented measures to curb electricity tariffs

MOSCOW, 5 Oct – PRIME. The Japanese government will take “unprecedented” measures to curb the rise in electricity prices for households and businesses, while a weaker yen will accelerate inflation and the possibility of a recession in the global economy poses a threat to the Japanese economy, Prime Minister Fumio Kishida said Wednesday.

According to him, the rise in energy and food prices as a result of the Ukrainian conflict, combined with the weakening of the yen, as well as the likelihood of a slowdown in the global economy, are significant risk factors for the Japanese economy.

In September, consumer prices in Tokyo rose at the fastest pace since 2014, adding to pressure on consumers as the yen tumbled to 24-year lows, official data released on Monday showed.

By the end of October, the government will prepare a new economic stimulus plan that will include measures to directly curb electricity tariff growth, Kishida said.

Amid falling ratings, Japan’s ruling party is considering allocating $100 billion to fight inflation.

As for the weakness of the yen, it is important for Japan to link this factor with the recovery of the economy through the restoration of inbound tourism, the return of foreign companies to the country and the growth of agricultural exports, the premier added.

In response to a question from an opposition member about the Bank of Japan’s extremely loose policy, which is helping to weaken the yen, Kishida said that monetary policy measures are within the competence of the central bank.