Core Viewpoint - The recent electoral setback for Japan's ruling coalition suggests a potential shift towards more accommodative fiscal policies in the coming months [1] Fiscal Policy Implications - Major opposition parties campaigned on platforms that included some form of consumption tax reduction, such as lowering food tax rates [1] - The analysis warns that reducing consumption tax as a response to high inflation may be an ineffective measure, as it would compel businesses to adjust their pricing structures, leading to significant compliance costs [1] - The government is likely to continue its proven policy mix of direct cash assistance and energy subsidies [1]