Takaichi's Approval Ratings Plummet Amid Rising Living Costs

Japanese Prime Minister Sanae Takaichi's approval rating has taken a hit due to rising living costs, according to a recent poll by the Yomiuri newspaper. The survey showed that her administration's approval rating slipped to 57% in July, down from 69% in June and marking the first time it has dropped below 60% since she took office last year.

The percentage of people disapproving of Takaichi's administration rose to 34%, up from 21% in June. A significant majority, 71%, also disapproved of her efforts to combat rising living costs. The poll was conducted between July 24 and 26.

Takaichi has faced criticism for her expansionary fiscal and monetary policy bias, which has led to a spike in bond yields and a slump in the yen to four-decade lows. This has delayed the government's decision on whether to cut an 8% levy on food sales, a pledge made by Takaichi to cushion the blow from rising living costs.

Kenji Yamamoto, chief market economist at Daiwa Securities, said that while Takaichi's approval ratings remain high compared to past administrations, 'the enormous political capital she gained from the lower house election victory is gradually diminishing.'