Japan’s inflation ticks up for the first time in 5 months
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Inflation in Japan picked up again for the first time since May, with new government figures showing a 2.9% rise in core consumer prices in September, which matched analyst forecasts and was higher than August’s 2.7% print. The core gauge ignores fresh food costs but still includes energy, meaning it captures a big chunk of household expenses. This is the same figure as headline inflation, which also rose to 2.9%, breaking higher than the Bank of Japan’s 2% goal for the 41st consecutive month. But not all inflation indicators went up. The core-core index, the one that strips out both energy and fresh food, and is the BOJ’s preferred way of tracking how embedded price increases have become, actually slowed to 3% in September. That’s down from 3.3% in August, signaling a possible cooling in broader price pressures. The mixed numbers come at a messy moment for the country. Sanae Takaichi, who just took over as prime minister this week, is now dealing with an economy that’s facing expensive imports, supply issues, and fading consumer confidence. She also has a central bank that’s trying to end a decades-long experiment with rock-bottom interest rates. That’s not a fun hand to be dealt. Rice prices fall but households still struggle Rice inflation, which had been insane earlier this year, is slowing fast. In September, prices were up 49.2% from the year before, which sounds awful, but it’s still way down from the 69.7% surge in August. Back in May, that number hit 101.7%, the highest jump in rice prices in more than fifty years. For families who rely on rice every day, even the slowdown doesn’t mean relief, just slightly less pain. Markets reacted right away. The Nikkei 225 closed 0.78% higher after the inflation print came out. The yen edged up…
Filed under: News - @ October 24, 2025 6:26 am