Japan Inflation Eases, Boosting PM Takaichi’s Economic Outlook

Japan’s inflation slowed sharply in January 2026, giving policymakers and households a rare moment of relief. Official data showed core consumer prices rising 2.0% year-on-year, the weakest pace in two years and close to the Bank of Japan’s target. Headline inflation also eased to 1.5%, helped by falling energy costs and government fuel subsidies. This cooling trend comes at a crucial time for Prime Minister Sanae Takaichi, who took office on February 8, 2026, with bold plans to revive growth and ease living costs.