Full Breakdown
Japan PM Sanae Takaichi’s Approval Rating Falls Below 60% Amid Rising Living Costs
7/27/2026, 8:49:10 AM
Core Event: Approval Rating Slumps to 57%
A poll conducted between July 24 and 26 showed the approval rating for Prime Minister Sanae Takaichi’s administration fell to 57 percent, down from 69 percent in June. It marked the first time the rating dropped below 60 percent since she took office in 2025. Disapproval rose to 34 percent from 21 percent in June, and the share of respondents who disapproved of the government’s effort to curb rising living costs climbed to 71 percent from 56 percent.
Background & Context: Expansionary Policies and Inflation Pressures
Takaichi’s administration has pursued an expansionary fiscal and monetary stance, which analysts link to a spike in Japanese government bond yields and a slump in the yen to its lowest level in four decades. The Bank of Japan raised its policy rate to 1 percent in June—the highest in 31 years—while real borrowing costs remain negative. Core consumer inflation has hovered near the BOJ’s 2 percent target for almost four years, aided by government fuel subsidies that kept inflation below the target for a fifth consecutive month. Market observers expect core inflation to climb back above 2 percent later this year as higher producer-price growth filters through the economy.
Official Statements & Responses
Kyodo news agency reported that Takaichi may reshuffle her cabinet in August or September, a move seen as a test of how she will steer her reflationist agenda.
Data & Statistics
- Approval rating: 57 % (July 24-26 poll)
- Disapproval rating: 34 % (July 24-26 poll)
- Dissatisfaction with cost-of-living measures: 71 %
- BOJ policy rate: 1 % (June)
- Core consumer inflation: near 2 % target for five months
What’s Next: Policy Decisions and Cabinet Outlook
The government has yet to decide when—or whether—to cut the 8 percent levy on food sales, a pledge intended to ease household expenses. A cabinet reshuffle slated for August or September could signal the administration’s next steps on fiscal stimulus and inflation management, while analysts watch for signs that core inflation may breach the 2 percent threshold later in the year.
Verbatim Quotes
- “Her approval ratings remain high compared to past administrations so it's not as if Takaichi's political grounding is shaking,” — Kenji Yamamoto, chief market economist at Daiwa Securities
