Japan's Prime Minister Shigeru Ishiba attends a press conference at the headquarters of the Liberal Democratic Party (LDP) in Tokyo Monday, July 21, 2025 after the prime minister's ruling coalition failed to secure a majority in the upper house in a parliamentary election. (Philip Fong/Pool Photo via AP)

Japanese Prime Minister Shigeru Ishiba said Monday he will stay in office to tackle challenges such as rising prices and high US tariffs after weekend election

While Sunday's ballot doesn’t directly determine whether Prime Minister Shigeru Ishiba’s shaky minority government falls, it heaps pressure on the embattled leader of the key U.S. ally.

Tariffs contributed modestly to the rise of inflation last month, analysts told ABC News, citing the price hikes in product categories made up primarily of imports. But, they added, overall price increases owed largely to a rise in housing and food products with little connection to tariffs.

New data showing price increases last month could foreshadow even higher costs if the president imposes steep tariffs on Aug. 1.

President Donald Trump's tariffs haven't raised inflation as previously projected, leading to various explanations among experts. Some believe producers have absorbed the bulk of the costs. The Consumer Price Index rose just 0.