[Japanese Prime Minister Fumio Kishida speaks in the parliament in Tokyo on March 28, 2022. Kishida announced last week an extension of subsidies for oil wholesalers to drive down retail prices, by one month to the end of April. (Photo by=Kyodo)]

TOKYO: Japanese Prime Minister Fumio Kishida said Monday his government will compile an additional economic package by the end of April to soften the impact of rising crude oil, food and other prices and ensure a recovery from the COVID-19 pandemic Kyodo reported.
 
The yen's depreciation is posing a challenge to policymakers in resource-poor Japan, as it inflates import costs and pressures households. Despite a verbal warning by Japan's top government spokesman against "rapid" currency moves, the U.S. dollar continued its ascent on Monday to break the 125 yen threshold for the first time since 2015. "We are entering a critical phase in reviving an economy damaged by COVID-19," Kishida told a session of the House of Councilors, adding that he will instruct his ministers to draw up a new package on Tuesday.

Calls have grown within the ruling coalition for the government to take further steps to ease the pain increasingly felt by Japanese consumers, with the yen's recent weakness magnifying the impact by raising import costs. Japan's economic recovery remains shaky. It was only last week that the nation became free of anti-virus restrictions for the first time since early January after a quasi-state of emergency ended on March 21 in 18 prefectures including Tokyo and Osaka.