Latest news with #cashhandouts
CNA
13 hours ago
- Business
- CNA
Rice prices double as Japan's core inflation hits 3.7%
TOKYO: Japan's core inflation rate accelerated to 3.7 per cent in May, official data showed on Friday (Jun 20), posing a threat to Prime Minister Shigeru Ishiba's leadership ahead of July elections. Rice prices were more than twice as high as they were a year previously, despite the government releasing its emergency stockpile of the staple grain. Frustration over inflation threatens to deal a blow to Ishiba's ruling Liberal Democratic Party next month, when an election for parliament's upper house is due. Friday's data, which excludes volatile fresh food prices, beat market expectations and was up from the 3.5 per cent year-on-year rise logged in April. Prices rose for a variety of food products, including non-fresh items, ranging from coffee to chocolate. Electricity bills were 11.3 per cent more expensive, and gas fees rose 5.4 per cent. Ishiba has pledged cash handouts of 20,000 yen (US$139) for every citizen – doubling it for children – to help households combat inflation ahead of the July elections. The race is crucial to Ishiba after public support for his government tumbled to its lowest level since he took office in October, which observers say was partly caused by a surge in inflation and soaring rice costs. Rice shortages, caused by a supply chain snarl-up, mean the price of the grain was up 101 per cent in May, compared to the eye-watering 98 per cent rise seen in April. The government began releasing stockpiles in February in an attempt to drive down prices – something it has only previously done during disasters. A mosaic of factors lies behind the rice shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year, prompted by a government warning about a potential "megaquake" that did not strike. Going forward, US tariffs are expected to weigh on Japan Inc, with economists predicting a slowdown ahead. Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy. Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy.
Malay Mail
13 hours ago
- Business
- Malay Mail
Rice crisis fuels voter rage as Japan's core inflation hits 3.7pc
TOKYO, June 20 — Japan's core inflation rate accelerated to 3.7 per cent in May, official data showed today, posing a threat to Prime Minister Shigeru Ishiba's leadership ahead of July elections. Rice prices were more than twice as high compared to a year previously, despite the government releasing its emergency stockpile of the staple grain. Frustration over inflation threatens to deal a blow to Ishiba's ruling Liberal Democratic Party next month, when an election for parliament's upper house is due. Today's data, which excludes volatile fresh food prices, beat market expectations and was up from the 3.5 per cent year-on-year rise logged in April. Prices rose for a variety of food products, including non-fresh items, ranging from coffee to chocolate. Electricity bills were 11.3 per cent more expensive, and gas fees rose 5.4 per cent. Ishiba has pledged cash handouts of ¥20,000 (RM585) for every citizen — doubling it for children — to help households combat inflation ahead of the July elections. The race is crucial to Ishiba after public support for his government tumbled to its lowest level since he took office in October, which observers say was partly caused by a surge in inflation and soaring rice costs. Rice shortages, caused by a supply chain snarl-up, mean the price of the grain was up 101 per cent in May, compared to the eye-watering 98 per cent rise seen in April. The government began releasing stockpiles in February in an attempt to drive down prices — something it has only previously done during disasters. A mosaic of factors lies behind the rice shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then, some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential 'megaquake' that did not strike. Going forward, US tariffs are expected to weigh on Japan Inc, with economists predicting a slowdown ahead. Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy. Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy. — AFP
Times of Oman
a day ago
- Business
- Times of Oman
South Korea approves $14.7 billion second extra budget to boost economy
Seoul: South Korea will implement a second supplementary budget worth 20.2 trillion won ($14.7 billion) aimed at revitalising domestic consumption and bolstering the economy, including the distribution of cash handouts to all citizens. According to South Korea's (Yonhap) News Agency, the Ministry of Economy and Finance said in a statement on Thursday that "the supplementary budget -- the second this year and the first since President Lee Jae Myung took office two weeks ago -- was approved at a Cabinet meeting. It follows a 13.8 trillion-won extra budget passed in May and is subject to parliamentary approval." "The government will support economic revitalization by promoting consumption, encouraging investment and expanding construction spending," the ministry said in a statement. The government will inject 10.3 trillion won to provide "consumption coupons" ranging from 150,000 to 500,000 won per person, depending on income levels, the ministry said. During the January–April period, South Korea's managed fiscal balance, a stricter measure of fiscal health, recorded a deficit of 46.1 trillion won, according to government data. In 2024, the fiscal deficit exceeded 100 trillion won.
Japan Times
13-06-2025
- Business
- Japan Times
Ishiba instructs LDP executive to include cash handout in election pledge
Prime Minister Shigeru Ishiba said on Friday he had instructed the Liberal Democratic Party's executive to include cash handouts as part of its election campaign pledge to aid households coping with inflation. The handout would be ¥20,000 ($139) per person and an additional ¥20,000 would be added on top of that per child or low-income earner, Ishiba said. The handout plan could add to concerns over the government's already tattered finances, as lawmakers seek to appease voters ahead of an Upper House election slated for July.
Reuters
13-06-2025
- Business
- Reuters
Japan PM instructs ruling camp to include cash handout in election pledge
TOKYO, June 13 (Reuters) - Japanese Prime Minister Shigeru Ishiba said on Friday he had instructed the ruling coalition to include cash handouts as part of its election campaign pledge to aid households coping with inflation. The handout would be 20,000 yen ($139) per person and an additional 20,000 yen would be added on top of that per child or low-income earner, Ishiba said. The handout plan could add to concerns over the government's already tattered finances, as lawmakers seek to appease voters ahead of an upper house election slated for July. ($1 = 144.0800 yen)
