Japan PM Takaichi's Approval Rating Slides Amid Inflation Concern
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Japan PM Takaichi’s Approval Rating Slides as Inflation Bites: Yomiuri Poll
The latest poll numbers from Yomiuri paint a bleak picture for Japanese Prime Minister Sanae Takaichi. Her approval rating has plummeted to 57% in July, the lowest level since she took office. Rising living costs are clearly taking their toll on her popularity.
Takaichi’s administration has championed expansionary fiscal and monetary policies, which have led to higher bond yields and a weaker yen at four-decade lows. This reflationist approach was meant to boost economic growth, but the short-term costs of inflation seem to be outweighing any potential long-term benefits. The surge in living costs is particularly evident in food prices, where the 8% sales tax remains untouched despite Takaichi’s pledge to cut it.
Internal opposition within her own party has delayed the tax cut, a clear sign that even some of Takaichi’s allies are questioning the wisdom of this policy. Kenji Yamamoto, chief market economist at Daiwa Securities, notes that “the enormous political capital she gained from the lower house election victory is gradually diminishing.” This suggests that while Takaichi may still have a loyal base of supporters, her overall popularity is waning.
The Bank of Japan’s decision to raise interest rates to 1% in June was seen as a move to combat inflation. However, with core inflation hovering around its 2% target for nearly four years, it’s clear that more needs to be done. Analysts expect core inflation to climb back above 2% later in 2026, driven by increasing producer prices.
The implications of this are far-reaching and extend beyond Takaichi’s personal popularity ratings. If Japan is unable to get a grip on inflation, it could lead to a series of consequences that threaten the country’s economic stability. A prolonged period of high inflation could erode consumer confidence, leading to decreased spending and reduced economic growth.
Japan has been struggling with low birth rates, an aging population, and a declining workforce, all of which have contributed to its economic stagnation. If Takaichi’s policies are unable to address these underlying issues, it could lead to a deeper crisis for Japan’s economy. The challenge facing Japan is clear: its economy needs a more nuanced and effective approach to addressing its economic challenges.
In the coming weeks and months, the focus will be on how Takaichi responds to this decline in popularity. Will she stick to her reflationist policies or pivot in response to growing opposition? Any message she sends through potential Cabinet reshuffles will be closely watched, but one thing is certain: Japan needs a more effective approach to addressing its economic challenges.
Reader Views
- CMColumnist M. Reid · opinion columnist
Takaichi's approval rating slide is a stark warning sign for Japan's economic future. While inflation may be a short-term cost of reflationary policies, its persistent presence suggests that these policies are fundamentally flawed. The Bank of Japan's rate hike was a long-overdue move, but it's unclear whether it will be enough to combat the impending producer price increases. Japan's policymakers would do well to revisit their strategy and prioritize addressing underlying structural issues driving inflation, rather than just treating its symptoms.
- EKEditor K. Wells · editor
The writing's on the wall for Prime Minister Takaichi - her approval ratings are tanking due to inflation concerns. But what's striking is the disconnect between her economic policies and the impact on everyday Japanese citizens. Her government's expansionary fiscal and monetary policies have clearly failed to deliver in terms of tangible benefits, instead exacerbating rising living costs. One key question is: can Takaichi's administration pivot quickly enough to address inflation before it derails Japan's economy altogether?
- RJReporter J. Avery · staff reporter
The Yomiuri poll numbers are just the tip of the iceberg - Takaichi's approval rating slide is a symptom of deeper economic woes. The prolonged period of 2% core inflation should be alarming to policymakers: it's not just about maintaining stability, but also about encouraging growth and investment. The Bank of Japan's rate hike was a necessary step, but without corresponding fiscal measures, it may only serve to further increase the value of the yen and exacerbate deflationary pressures elsewhere in the economy.