The ruling bloc's defeat in Sunday's general election is expected to cast a shadow over the government's key policies, including an economic package that is slated to be drawn up as early as next month.
Prime Minister Shigeru Ishiba is hoping to secure cooperation from opposition parties to sustain his administration after his ruling coalition lost its majority in the election for the House of Representatives, the all-important lower chamber of parliament.
But interparty coordination on measures to tackle inflation is likely to be challenging. Prolonged postelection political turmoil may significantly delay work to compile a fiscal 2025 budget, which would deal a blow to people's livelihoods.
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