Japan’s Inflation Shows Mixed Signals Amid Economic Challenges
Japan’s Core inflation gauge rose to 2.9% in September, marking the first increase in five months and exceeding the Bank of Japan’s 2% target for the 41st consecutive month. The figure, which includes energy costs, reflects persistent household expense pressures. Meanwhile, the core-core index—stripping out both energy and fresh food—slowed to 3%, suggesting a potential cooling of broader price trends.
Prime Minister Sanae Takaichi faces a complex economic landscape: soaring import costs, supply chain disruptions, and waning consumer confidence. The BOJ’s delicate pivot from ultra-low interest rates adds another LAYER of uncertainty. Rice prices, though decelerating from May’s 101.7% peak, remain 49.2% higher year-over-year, offering little respite for households.
