Japan's Prime Minister Shigeru Ishiba instructs his ministers to devise an economic relief package to mitigate the effects of inflation.

• Shigeru Ishiba, the Japanese Prime Minister, requested that his ministers create an economic relief package to alleviate the impact of inflation.
• Ishiba stated in his first policy address to parliament as prime minister that it is necessary to assist individuals facing increasing expenses until a growth cycle with wage growth exceeding inflation and stimulating capital investments is established.
• Ishiba stated in his speech that the support measures would consist of subsidies for low-income households and larger grants for local governments.

Shigeru Ishiba, the Japanese Prime Minister, requested that his ministers create an economic relief package to alleviate the impact of inflation.

Ishiba stated in his first policy address to parliament as prime minister that it is necessary to assist individuals facing increasing expenses until a growth cycle with wage growth exceeding inflation and stimulating capital investments is established.

Earlier reports indicated that Ishiba intends to create a supplementary budget to finance the relief package following the Oct. 27 lower house elections.

Ishiba stated in his speech that the support measures would consist of subsidies for low-income households and larger grants for local governments.

The new prime minister of Japan, who was elected just three days ago, has set the date for a snap election for the lower house of parliament, which will take place a year before it's due.

Ishiba was heckled throughout his speech on Friday.

While Japan's narrowed gains in the Topix index were only 0.09%, the broad-based index rose by 0.36%. The benchmark also increased by 0.013 ticks. Yields rise when bond prices fall.

The strengthened further trading around 146.01 against the U.S. dollar.

The newly elected prime minister, who emerged victorious in a tight leadership contest, was officially confirmed by parliament on Tuesday. He now faces the daunting task of steering an economy out of a prolonged period of stagnation.

Despite years of deflationary pressures, the Bank of Japan is now campaigning to normalize monetary policy as inflation reaches its 2% target. However, policymakers face a public that is not accustomed to rising prices.

The Japanese government had aimed to reduce energy subsidies that hinder its efforts to decarbonize, as the country remains heavily dependent on fossil fuel imports. However, it extended subsidies that were set to expire in May due to record heat this summer and a weak yen, making energy imports even more expensive. These extended subsidies will expire this month.

Ishiba pledged to ease the financial strain on families facing increasing living expenses and promote rural development, which is crucial for Japan's countryside, which is grappling with a broader demographic crisis and an aging population during his election campaign.

The 67-year-old veteran politician appointed a blend of opponents and supporters to his cabinet in an attempt to implement political changes within the Liberal Democratic Party, which has been plagued by corruption scandals that have caused division within the party.

Shinzo Abe's "Abenomics," characterized by loose monetary policy, fiscal stimulus, and structural economic reforms including tax cuts, has been a subject of criticism from Ishiba for a long time.

Before the election, he advocated for higher taxes, endorsed the Bank of Japan's plan to gradually raise interest rates, and expressed worry about the yen's continued depreciation.

On Wednesday, he stated that the current economic climate does not justify an additional rate increase. The yen experienced its largest single-day decline since June 2022.