Japan approves $32B emergency package to curb rising prices

Japan's government on Tuesday approved an emergency spending package worth five trillion yen ($32 billion) to ease the impact of rising energy and food prices on households.

Prime Minister Sanae Takaichi authorized the measure following a series of high-level meetings in Tokyo, the Mainichi newspaper reported.

The stimulus package includes direct cash transfers to low-income families and an extension of subsidies for electricity and gas bills through the end of the second quarter of 2026.

The decision came after government data released last week showed rice prices jumped 27.9% in January, marking the steepest increase in decades.

Opposition lawmakers criticized the package as insufficient, arguing that it relies heavily on new debt issuance in an economy where the debt-to-GDP ratio stands at around 240%.

Finance Ministry officials said 2.2 trillion yen ($14.1 billion) of the total package will be allocated to petrol price stabilization measures aimed at keeping fuel costs below a designated ceiling.

The Cabinet is expected to submit a formal request to parliament on Friday seeking approval for the necessary budgetary adjustments to allow immediate implementation.