Takamichi Saenae plans to launch an economic package to accurately address inflationary pressures.

Japanese Prime Minister Sanae Takaichi has ordered the introduction of a new set of economic measures aimed at alleviating the burden of inflation on households and businesses. Sanae Takaichi, who officially took office as Japan's first female prime minister this Tuesday, has not yet clarified the scale of the economic measures or indicated whether additional bonds will be issued to fund them. According to the directive issued by Sanae Takaichi, the Japanese government will draw up a supplementary budget to provide funding support for these economic measures. Although specific details have not been disclosed, the directive document indicates that the plan will include subsidies for winter electricity and gas bills, as well as financial allocations to alleviate local price pressures. Additionally, the plan will encourage small and medium-sized enterprises to increase wage levels and expand capital investments. The cash subsidy policy that failed to gain public support during the July election did not appear in the directive document this time. Sanae Takaichi has prioritized tackling rising living costs as a key economic task, reflecting public concerns about inflation. The directive indicates that she is more inclined to adopt targeted measures rather than large-scale spending plans. While Sanae Takaichi has previously supported radical monetary and fiscal stimulus policies, her stance has recently softened, promising to implement an expansionary and responsible fiscal policy. She currently faces the dual challenge of providing support to the economy while addressing concerns about Japan's huge public debt, which has led to a continuous rise in long-term bond yields. For over three years, Japan's consumer inflation rate has remained at or above the Bank of Japan's 2% target level. Meanwhile, the Bank of Japan has been gradually raising interest rates, increasing the government's borrowing costs. On Tuesday, Sanae Takaichi expressed her hope that inflation would be demand-driven by wage increases rather than cost-push inflation. The other two main pillars of this economic package are strengthening economic security and defense construction. The directive calls for investments in strategic areas such as artificial intelligence and semiconductors, as well as improving critical supply chains. The plan is expected to include measures to address U.S. tariff policies, including implementing the investment plan jointly announced by the U.S. and Japan earlier. According to the agreement, Japan has pledged to invest $55 billion in key areas in the U.S. in exchange for the U.S. lowering tariffs.