The Japanese government unveiled a series of emergency measures on Friday to shore up the slumping economy, including an income tax cut, fuel subsidies and government loans to companies, in a stimulus package worth Y11,500bn ($106bn, €72bn, £59bn).

The package was announced as data showed inflation topping 2 per cent for the first time in a decade, and follows figures this month showing the world’s second-largest economy had its biggest contraction in seven years in the second quarter.