The lower house of the Japanese parliament was formally dissolved today at the initiative of Prime Minister Sanae Takaichi, who hopes to capitalize on her popularity in early parliamentary elections on February 8th, while at the same time battling inflation.
The dissolution, decided by Sanae Takaichi, who became Japan's first female prime minister in October, paves the way for early parliamentary elections.
The ultranationalist leader is counting on her strong polls to boost the ratings of her right-wing Liberal Democratic Party, as the ruling coalition has only a narrow majority in parliament.
The election focused on the economy in a country long plagued by deflation but which has now been struggling for three and a half years with rising living costs and a chronically weak yen that makes imported goods more expensive.
Just before the dissolution of parliament, official data showed inflation slowing to 2,4 percent year-on-year in December and below three percent in November.
That slowdown is largely attributed to energy subsidies granted in December, while food prices continue to rise, with rice prices jumping an additional 34 percent from the previous year.
The price of rice more than doubled by mid-2025.
Public discontent over inflation contributed greatly to the downfall of Shigeru Ishiba, Sanae Takaichi's predecessor.
Seeking to reassure the public, the central bank unveiled a €117 billion stimulus package in November to provide assistance to households and businesses, including subsidies and grants.
The Bank of Japan, which has been tightening monetary policy since early 2024 to curb inflation, raised its key interest rate in December to its highest level in 30 years.
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