Japan PM dissolves parliament

Japanese Prime Minister Sanae Takaichi has dissolved parliament, paving the way for a snap national election scheduled for February 8.

The speaker of the Diet's lower house read out the dissolution order on Friday as lawmakers gave the traditional "banzai" cheer. The move triggers a 12-day official campaign period starting next Tuesday.

Takaichi, the country's first female premier who took office just three months ago, announced her intention to call the election on Monday. She is hoping to capitalise on her strong personal approval ratings, around 70 per cent, to help her Liberal Democratic Party (LDP) regain public support.

The governing LDP-Japan Innovation Party coalition holds only a slim majority. Analysts note that public support for Takaichi may not directly translate into votes for her party, with inflation remaining a key public concern.

Public broadcaster NHK stated the campaign will focus on tackling rising consumer prices and security issues amid heightened tensions with China. Relations soured after Takaichi suggested in November that Japan could become involved if China took military action against Taiwan, prompting economic and diplomatic retaliation from Beijing.

Government data on Friday showed inflation slowed to 2.4 per cent in December, aided by energy subsidies, though it remains above the central bank's target. The price of rice, a national staple, rose over 34 per cent compared to the previous year.

The main opposition has formed a Centrist Reform Alliance, but analysts say the LDP remains the favourite to win the closely watched poll.