"It's time to press on with the reform policies. I promise to do my utmost to create a society where the people can live with peace of mind," Mr Fukuda said.

The prime minister said he takes seriously the public's concerns and complaints about the social security system, vowing to quickly introduce "safety plans" within the next two years, while launching emergency relief measures for those hit hard by rising prices of fuel, food and other materials.

In his new Cabinet, Mr Fukuda retained several key ministers, including Foreign Minister Masahiko Komura, Health Minister Yoichi Masuzoe and Nobutaka Machimura, the chief government spokesman. Also joining were Bunmei Ibuki, 70, appointed finance minister; Kaoru Yosano, 69, tipped as economic and fiscal policy minister; and Seiichi Ota, 62, who became agriculture minister.

Meanwhile, the opposition continues its calls for early elections.