Japan Prime Minister Takaichi Vows to Have Country Exit Deflation, Closely Monitor Economic Indicators

The Yomiuri Shimbun

16:23 JST, November 12, 2025

Prime Minister Sanae Takaichi expressed her strong intention to closely watch economic indicators to eventually declare that Japan has exited deflation, at a House of Representatives Budget Committee meeting on Tuesday.

Takaichi defined an exit from deflation as a situation in which price levels are no longer falling and they seem unlikely to resume falling.

Regarding the current economic situation, Takaichi said: “Prices have continued to rise. However, I cannot say that the country has exited deflation.”

Before she can say that Japan is no longer in a state of deflation, Takaichi said, “I need to carefully determine the situation after comprehensively considering such factors as price levels and the sustainability of wage hikes.”

Regarding the reduction of Diet seats in the lower house, Takaichi said one option is to listen to the recommendations of a panel of ruling and opposition parties under the lower house speaker that is considering reforming the electoral system of the lower house.

She emphasized a stance to form a consensus about the issue between ruling and opposition parties.

“I will have good-faith discussions with all parties and parliamentary groups,” Takaichi said.

When asked about her stance on strengthening restrictions on paying for sex workers she said, “I will instruct [relevant officials] to determine the necessity of punishing those who pay for sex workers.”

Takaichi urged Justice Minister Hiroshi Hiraguchi to begin discussions for that purpose.