Japanese Prime Minister Fumio Kishida announced a plan to support the economy worth 17 thousand billion yen, equivalent to just over 106 billion euros, within the framework of policies to support the purchasing power of the lower middle classes, which are still suffering from erosion due to high inflation. Under the current plan, the government will use about 3,500 billion yen to implement a tax cut of 40,000 yen (250 euros) for each taxpayer, while an additional 1,000 billion yen will be allocated to return 70,000 yen to low-income families. Other measures include providing support to reduce gasoline prices and energy bills, as well as a plan to retrain some categories of workers as part of the government’s commitment to invest in the human resources of companies.
Rising commodity prices are hitting Japanese households at a time when real wage growth is failing to keep pace with inflation. Kishida wanted to highlight the need for adequate and sustained salary increases, while providing support to contain the increase in the cost of living.
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