Headline: Weak Yen Fuels Price Pressures as Tokyo Prepares Fresh Relief Measures
Japan’s economy minister, Kiuchi, warned that the yen’s depreciation is intensifying inflation by lifting import costs and consumer prices, eroding household purchasing power. The government signaled it will widen support to cushion the cost-of-living squeeze while pushing for pay increases that outrun inflation to restore real income growth.
Officials in Tokyo are preparing additional measures targeted at vulnerable households, alongside energy relief aimed at offsetting higher fuel and utility bills. The ministry’s comments also carried a note of concern about currency weakness, a message that market participants may interpret as mild verbal intervention amid ongoing volatility in foreign exchange markets.
Beyond near-term relief, the government reiterated its focus on a sustained wage cycle to underpin private consumption. By encouraging wage growth that exceeds price gains, policymakers aim to stabilize real spending and reduce reliance on temporary subsidies as Japan navigates the inflationary impact of a weaker yen and elevated import prices.
Key Points: – Economy minister Kiuchi says the weaker yen is lifting import costs and pushing up consumer prices. – Government to expand targeted support for vulnerable households and energy relief. – Comments viewed as mild verbal intervention amid currency market volatility. – Policy priority is wage growth that outpaces inflation to rebuild real incomes. – Measures aim to sustain private consumption while easing the cost-of-living burden.
