Soaring food prices pose risk to Takaichi’s election prospects

Rising food costs are a top concern for voters ahead of Japan’s national election on Sunday. A Nikkei survey shows about 54% cite inflation as their biggest issue. Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party faces risks from frustration over living expenses.

A key issue for voters entering Japan’s national election on Sunday is the rising cost of food. Frustration over soaring living expenses contributed to major setbacks for Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party in the two national elections before she assumed office last October.

Successive governments introduced subsidies to ease utility bills during that period, but sharp increases in food prices curtailed the aid’s impact on household budgets. Keiko Sato, 81, from rural Akita in northern Japan, said she has cut back on non-essential purchases like clothes because “there’s no real breathing room” in her budget anymore. “When I shop at regular supermarkets, things are so expensive that I just pull my hand back and don’t buy anything.”

These pressures tie into broader concerns over consumption tax, the Japanese economy, inflation, and economic indicators. In the 2026 Lower House election, such economic strains could significantly influence voter decisions.

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As campaigning unfolds for Japan's 2026 Lower House election, Prime Minister Sanae Takaichi is leaning toward temporarily reducing the consumption tax on food to zero. Caution prevails within the Liberal Democratic Party over fiscal implications, with implementation hinging on post-election discussions. The move aims to address voter concerns amid opposition pushes for tax relief.

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A Yomiuri Shimbun survey shows many candidates in Japan's lower house election are emphasizing economy and employment, along with child-rearing support, as key issues. Discussions on consumption tax are prominent, but fiscal reconstruction and politics-and-money scandals receive little attention. While some opposition parties call for abolishing the tax, the ruling party prioritizes economic stimulus measures.

Prime Minister Sanae Takaichi has enjoyed tailwinds since taking office on October 21, with high approval ratings and an ambitious policy agenda. In 2026, however, she must demonstrate to voters that she can meet their expectations through steady leadership and concrete solutions to national challenges. Like Charles Dickens' 'Great Expectations,' these high hopes could become her biggest test.

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Japan's rice policy stands at a crossroads as prices for the staple food remain at record highs, straining households. In August 2025, then-Prime Minister Shigeru Ishiba declared a shift to boost production, but his successor Sanae Takaichi reversed this in October, opting to keep output aligned with demand.

A Yomiuri Shimbun survey shows that 74% of Liberal Democratic Party candidates for the House of Representatives election support a limited reduction in the consumption tax rate, while 20% prefer maintaining the current rate, indicating caution within the party ahead of Sunday's vote.

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Prime Minister Sanae Takaichi is scheduled to hold a press conference on January 19, 2026, at 6:00 p.m., where she is likely to announce her intention to dissolve the House of Representatives. The dissolution is expected at the start of the regular Diet session on January 23, prompting ruling and opposition parties to intensify preparations for a general election.

 

 

 

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