Japan’s Prime Minister Sanae Takaichi dissolved parliament on 23 January 2026, triggering a snap general election on 8 February, as she seeks a stronger mandate amid inflation pressures and market unease.
The country’s first female leader is banking on strong Cabinet approval to offset weak ratings for her Liberal Democratic Party (LDP), which governs with a slim lower-house majority.
Key developments
• Dissolution followed Takaichi’s pledge to tackle living costs and boost defence spending.
• December core inflation slowed to 2.4% y/y, helped by power subsidies, but remains above target.
• Rice prices rose 34% y/y in December, highlighting household strain.
• Cabinet approved a ¥122.3tn FY2026 budget; critics warn dissolution could delay passage.
• Proposed two-year food sales-tax cut has unsettled bond markets; debt is set to exceed 230% of GDP.
• The Bank of Japan is expected to hold rates while monitoring market volatility.
Opposition parties, led by the Constitutional Democratic Party, say the move risks livelihoods, though analysts still see a narrow path to victory for challengers.
Follow on social media TikTok@tut0ughInstagram@tut0ugh Threads@tut0ugh X@tut0ugh YouTube@tut0ugh
tut0ugh 