Japan's April Core Inflation Drops to 1.4%; Government Considers Additional Budget to Curb Energy Prices

Central News Agency, Tokyo, May 22. According to official data released today, Japan's core consumer price index (CPI) for April rose 1.4% year-on-year. Prime Minister Sanae Takaichi is considering further measures to reduce cost pressures stemming from the Middle East conflict. Excluding volatile fresh food, Japan's core inflation rate for April was 1.4%, lower than the market expectation of 1.7% and down from 1.8% in March. Due to the government's emergency subsidy program launched last month and reduced taxes for car owners, gasoline prices fell in April. Prime Minister Takaichi is accelerating the compilation of an additional budget to cope with rising prices and tight oil supplies triggered by the Middle East conflict. Japan's economy is highly dependent on imported oil, most of which comes from the Middle East. According to official data released yesterday, Japan's crude oil imports from the Middle East in April fell by 67% compared to the same period last year, and imports of other energy products from the region also declined significantly. Japanese media reported that Prime Minister Takaichi is expected to pass a plan next week to use 500 billion yen in reserve funds to subsidize household electricity and gas bills. According to AFP, Takaichi did not disclose the scale of the additional budget, only stating that she is considering measures before prices spiral out of control. Leaders of Japan's main opposition party have suggested that the additional budget may need to reach 3 trillion yen.