Takaichi's approval rating slides as Japanese voters react to rising living costs

JAPAN’S Prime Minister Sanae Takaichi’s administration has suffered a sharp decline in public support as rising living costs fuel dissatisfaction over her government’s economic policies, according to a recent poll by the Yomiuri newspaper.

The approval rating for Takaichi’s administration fell to 57 per cent in a survey conducted from July 24 to 26, down from 69 per cent in June, marking the first time support for her government has dropped below 60 per cent since she took office in 2025.

The proportion of respondents who disapproved of her administration increased to 34 per cent from 21 per cent in the previous month, the newspaper reported.

Reuters reported on Monday that the decline presents a new challenge for Takaichi, whose expansionary fiscal and monetary policy stance has contributed to market volatility, including a rise in government bond yields and a weakening yen that fell to four-decade lows.

Her government has also faced delays over a decision on whether and when to reduce Japan’s eight per cent food sales tax, a pledge made by Takaichi to help households cope with higher prices.

The issue has been complicated by opposition from within her own ruling party and concerns over the impact of tax cuts on public finances.

The Yomiuri poll showed that dissatisfaction with the government’s efforts to address rising living costs had increased significantly, with 71 per cent of respondents expressing disapproval, compared with 56 per cent in June.

Other recent media surveys have also indicated declining support for Takaichi, with Kyodo News reporting that she could reshuffle her Cabinet as early as August or September.

Despite the decline, analysts said Takaichi’s political position remained relatively strong compared with previous administrations.

"Her approval ratings remain high compared to past administrations so it’s not as if Takaichi’s political grounding is shaking," said Kenji Yamamoto, chief market economist at Daiwa Securities.

"But it’s also true the enormous political capital she gained from the lower house election victory is gradually diminishing," he added.

Yamamoto said attention would now turn to the message Takaichi sends through any Cabinet reshuffle, particularly regarding the future direction of her reflationary economic policies.

The Bank of Japan (BOJ) raised interest rates to a 31-year high of one per cent in June, although real borrowing costs remain negative as inflation has stayed close to the central bank’s two per cent target for nearly four years.

Government fuel subsidies helped keep core consumer inflation below the BOJ’s target for a fifth consecutive month in June.

However, analysts expect core inflation to rise above two per cent again later in 2026 as higher producer prices gradually pass through to consumers.

The latest decline in public support comes as Takaichi seeks to balance efforts to stimulate economic growth with growing pressure to address the financial strain faced by households. - July 27, 2026