Japan's Prime Minister Sanae Takaichi said she would call a national election for February 8 to seek voter backing for increased spending, tax cuts and a new security strategy expected to accelerate Japan's defence build-up.

"Today, I, as the prime minister, have decided to dissolve the lower house on January 23," she said in a press conference.

"I am staking my own political future as prime minister on this election. I want the public to judge directly ‍whether they will entrust me with the management of ⁠the nation.

"Is Sanae Takaichi fit to be prime minister? I wanted to ask the sovereign people to decide.

"Following the dissolution of the lower house on January 23, the schedule will be set for campaigning to start on January 27 and voting and counting to held on February 8."

Takaichi promised a two-year ‍halt to an 8 percent consumption tax on food and said her spending plans would create jobs, boost household spending and increase other tax revenues.

The prospect of a consumption tax cut, which ‌would reduce government revenue by five trillion yen a year, according to government estimates, ‍sent the yield on Japan's 10-year ‌government bonds to a 27-year ‌high ‌earlier on Monday.

The snap vote will decide all 465 seats in parliament’s lower house and mark Takaichi's first electoral test since becoming Japan's first ⁠female premier in October.

Calling an early election would allow her to capitalise on strong public support to tighten her grip on the ruling Liberal Democratic Party and shore up her ‌coalition’s fragile majority.

The election will test ‍voter appetite for higher spending at a time when the rising cost of living is the public's top concern. A poll released by public broadcaster NHK last week found 45 percent of respondents cited prices as their main ‌worry, followed by diplomacy and ⁠national security at 16 percent. (Reuters/AFP)