Japan’s 2026 budget should be drafted to account for inflation, private-sector advisers to the government are urging.
“It’s no longer appropriate to draw up budgets based on the implicit assumption of flat prices as was done during the deflationary era,” they told the administration.
The four private-sector members of the Council on Economic and Fiscal Policy, which advises the government, presented their written recommendations on Thursday. Their call for a budget that takes rising prices into account comes as inflation remains elevated in Japan and as the markets indicate concern about excess fiscal spending by the Japanese government.
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