Kishida vows to step up work on package addressing soaring prices

Prime Minister Fumio Kishida vowed on Tuesday to step up work on an emergency package of measures to address prices that have been soaring since Russia’s invasion of Ukraine.

“We will respond in an urgent and flexible way to the crisis we are now facing,” Kishida said at the first ministerial meeting on the measures.

The government plans to come up with the package by the end of this month, as prices for a wide range of items, including crude oil and grains, have been soaring.

The package will include programs to deal with high crude oil prices, ensure the stable supply of resources and food, support small and midsize companies and provide aid to people in need.

“We must prevent soaring prices for crude oil, materials and food from causing a major impact on people’s lives and economic activities, and hindering a smooth recovery of economic and social activities from the coronavirus crisis,” Kishida said.

The government plans to tap ¥5.5 trillion in reserve funds set aside under its budget for fiscal 2022, which began this month.

Agriculture minister Genjiro Kaneko told a news conference that his ministry is considering assistance to farmers and food producers to help them weather the impact of higher prices.

“We will respond to concerns about soaring prices for oil for fuel, chemical fertilizer ingredients and grains, as well as about the supply of imported timber and marine products,” Kaneko said.

Komeito, the coalition partner of Kishida’s ruling Liberal Democratic Party, is calling on the government to enact a fiscal 2022 supplementary budget during the current parliamentary session, which is set to end in June.

Economic and fiscal policy minister Daishiro Yamagiwa told a separate news conference that the government first needs to focus on emergency measures financed by the existing budget.