Japan plans US$19bil extra budget as costs rise with Iran war

TOKYO: Japanese Prime Minister Sanae Takaichi said on Monday the government will compile a US$19 billion supplementary budget to support households grappling with soaring everyday costs driven by the Iran war.

Takaichi said the budget, which is about 3 trillion yen, will be used to ease the rising cost of petrol, electricity and gas, explaining that “the situation in the Middle East remains uncertain”.

“With a view to minimising risk, we have drawn up a supplementary budget to ensure we’re fully prepared financially,” she told reporters, adding the draft would be submitted to parliament possibly next week.

Early this month, leading potato chip maker Calbee unveiled a new grey packaging for 14 product lines, swapping its signature orange-and-yellow packets, with local media attributing the move to an ink shortage linked to the Iran war.

But Takaichi said the government expected to be able to secure a stable supply of oil until next spring.

She added that alternative supplies for naphtha, an oil byproduct used in a wide range of industries, from outside the Middle East have recovered to more than 80% of previous levels.

Japan’ central bank hiked its inflation forecasts last month and cut its growth projections after the Iran war sent oil prices soaring.

It said “the rise in crude oil prices is expected to push up prices, mainly of energy and goods, with moves to pass on wage increases to selling prices continuing.”

المصدر: Free Malaysia Today