TOKYO (Sept 20): The Japanese government has approved an allocation of ¥3.49 trillion (US$24.3 billion or RM110.7 billion) from the reserve fund to support the population against soaring food and fuel prices during the current fiscal year, which started on April 1, reported Sputnik.

The package presupposes one-time payments to low-income families in the amount of ¥50,000, as well as subsidies to companies carrying out wholesale energy supplies, Japanese broadcaster NHK reported.

The reserve fund for the current fiscal year is estimated at ¥5 trillion, the report said.

Prices in Japan are expected to rise for about 8,000 items during autumn, with over 6,000 of them in October. In total, prices will rise for 20,000 products in 2022, with an average price increase of 14%, according to Japanese research centre Teikoku Databank.

The yen fell to its lowest last week, and traded at 144.9 against the US dollar for the first time since August 1998. The fall is explained by significant differences in the approaches of the US and Japanese central banks to monetary policy. The US Federal Reserve continues to increase the interest rate, while the Bank of Japan, on the contrary, keeps the rate negative.