According to CoinMeta, Japanese Prime Minister Sanae Toshihiro announced on the 30th that starting from next April, the consumption tax on food will be reduced from 8% to 1% for a period of two years. At the same time, cash subsidies equivalent to the amount of the 1% consumption tax will be distributed to low- and middle-income groups. This is a large-scale tax reduction measure introduced by Toshihiro Toshihiro's cabinet to address the continuous rise in prices, and it is expected that the plan will be approved by the cabinet at the beginning of August. However, the plan faces challenges regarding the source of fiscal funds, which amount to about 5 trillion yen per year, as well as political pressure to revert to the original tax rate after two years. The Japanese government hopes to boost consumer confidence, which has been sluggish due to high prices, by lowering the consumption tax. According to an analysis by Nikkei News, if the consumption tax on food is reduced to 1%, Japan's CPI is expected to decline by 1 to 1.4 percentage points in the fiscal year 2027. Nevertheless, the market generally expects that the actual benefits for consumers from this tax reduction may be lower than anticipated. The head of the Economic Research Department at the Japan Life Foundation Institute stated that companies may use the tax reduction to absorb rising costs and not fully reflect the tax cut in product prices, so the actual price reduction is likely to be smaller.