Japan Week Ahead: Diet Set to Enact Stop-Gap Budget, Continues Debating Record Spending in Fiscal 2026 Budget amid Spike in Oil Prices
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Japan's lawmakers are set to approve a stop-gap budget to ensure essential spending while debating the full-year budget for fiscal 2026. Amid rising global oil prices, Prime Minister Sanae Takaichi is utilizing special funds to cap fuel prices and revive electricity subsidies. The Bank of Japan is gradually lifting interest rates, with new core CPI measures indicating inflation trends. Upcoming data is expected to show stable consumer inflation, low unemployment, and a potential slip in industrial production, while retail sales remain sluggish due to a lack of foreign visitors.
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