Japan July Core Consumer Inflation. Ideas Later.

  

Japan's July core consumer inflation rises 1.8%, up for 2nd month

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Article:

TOKYO (Kyodo) -- Japan's core consumer prices in July rose 1.8 percent from a year earlier, marking the biggest increase since January, driven up by price hikes for food stemming from the Iran war and higher energy bills on elevated crude oil prices, government data showed Friday.

The data may support growing speculation that the Bank of Japan will raise its benchmark policy rate next month. The central bank has flagged upside risks to inflation due to a weaker yen that inflates import costs, the impact of the crude oil prices and heightened demand for artificial intelligence.

The increase in the nationwide consumer price index, excluding volatile fresh food, followed a 1.6 percent rise in June and remained below 2 percent for the seventh consecutive month, according to the Ministry of Internal Affairs and Communications.

The Middle East conflict has raised supply concerns for oil-derived naphtha, commonly used as a raw material in the production of plastics, packaging materials and printing ink solvent, pushing food companies to announce price hikes.

Prices for food, excluding fresh items, climbed 3.0 percent in the reporting month, reflecting higher prices on potato chips and other snacks. The growth rate slowed from 3.1 percent in June. Hamburger prices rose 13.2 percent in July.

Household consumable goods such as dish washing detergents and bleaches gained 6.3 percent in July, accelerating from a 3.7 percent increase in June, possibly reflecting price hikes due to naphtha supply concerns, a ministry official said.

The category of expenses for recreational durable goods increased 1.7 percent, compared to a 2.1 percent fall in June, due to rising prices of tablets and notebook computers as expanded demand for AI leads to rises in prices of semiconductors. Prices of memory cards more than doubled in July.

Energy costs rose 0.6 percent on year, following a 0.4 percent drop in June, for the first rise in eight months, as propane gas rose 6.5 percent and kerosene 15.7 percent.

Bills for electricity and city gas fell by a smaller margin in the reporting month, contributing to the rise in the overall inflation figure. They fell by 0.1 percent and 1.1 percent in July, compared with 1.7 percent and 3.2 percent in the previous month.

Gasoline prices, meanwhile, were down 1.8 percent, compared with a 0.8 percent fall in June, due to government subsidies.

The ministry official said it is hard to give an outlook for prices, with the underlying inflation trend becoming difficult to assess given the impact of state subsidies, introduced since March to curb rising costs for fuel due to higher crude oil prices.

The government will also restart financial aid for electricity and gas bills from July to September to ease the burden on households, a move that is likely to push down energy costs in the coming months, the official said.

The ministry changed the base year to 2025 from 2020 and the calculation method for the consumer price index. Under the new base year, the core CPI for January rose 1.9 percent, compared to an increase of 2.0 percent under the previous base year.

Core-core CPI, which strips away both energy and fresh food to reflect underlying price trends, rose 1.9 percent in July.

Article source:  https://mainichi.jp/english/articles/20260821/p2g/00m/0bu/018000c

Japan Convenience Store Sales: Updated Aug. 21, 2026.

Japan convenience store sales up 0.7% on promotional efforts in July

Ideas

Japanese convenience stores or conbinis as they are called in Japan are an out of this world experience as they are not like convenience stores in any other country.

While they are not like real dollar stores or even like Daiso, which is a popular 100 yen store in Japan, they carry a lot of products and not to mention most fresh food and you can almost exist exclusively on food from a Japanese convenience store everyday, if you are on a reduced budget.

The Japanese convenience, for the most part, have been created to fill the need of the busy metro office worker in Japan as most of the convenience stores are in the large metro areas in Japan.

And they have more than just fresh food and snacks but also fax services, some bank services, ATM services and so on for the busy office worker. And you can get your Amazon or even Rakuten online order shipped to a nearby convenience store, pick it up at the store, and then catch the train back to your home too.

It's been noted in other articles that most of the part-time workers are now foreign students and not Japanese students as for some reason Japanese students don't want to work at a convenience store as maybe the pay is either too low or the hours are not good for them or they just don't want to do what is needed as a part time convenience store worker.

Whenever I visit Japan, mostly in Yokohama and go to a convenience store, you can see the name tags of the part time workers which is written in the katakana script used is mostly used for foreign words in Japan.

What should be admired about Japan is its business culture even though there is a lot competition among the seven major convenience store operators, it doesn't seem to be like the the competition in the US as it seems there is a layer of cooperation among the seven convenience store operators like there is among Japanese car makers and Japanese airline companies as its more of a shared culture of we are all in this together even though we are competitors.

Once again, it seems, at least in the major metro areas such as Osaka, Kyoto, Nagoya, and the Tokyo metro area, that there is convenience stores on almost every corner to meet the needs of the busy metro company workers.

For many of these convenience stores they almost have 24 hour re-stocking of some products as its all computerized now and when a product begins to run low they re-stock the products quickly and even though some fresh food products might be re-stocked every hour they are re-stocked fast enough for at least the main rush hour worker times of in the morning, at lunch, and in the evening too.

And yes, due to the inflation challenge in Japan now, its quite possible that office workers in Japan are not visiting a convenience store as much as before as they too have cut-back on how many times they might visit a convenience in a day or even a week now.

All told visiting a Japanese convenience store might not be like a visit to a 7 wonders of the world experience but its worth visiting to see just what goes on in a Japanese conbini and see all the fresh food and all the daily products they have available and not to mention the ice coffee machines which of course is much cheaper than a Starbucks in Japan and you can get  hot coffee or ice coffee for around 100 yen or maybe 150 yen at the most.

Have a nice nice day!

Article source: https://mainichi.jp/english/articles/20260820/p2g/00m/0bu/033000c

Japan Current Account: Ideas Later.

Japan logs 635 bil. yen trade deficit in July, weak yen swells oil imports

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Article:

TOKYO (Kyodo) -- Japan logged a trade deficit of 634.5 billion yen ($4 billion) in July, marking the third straight month of red ink, as the weak yen inflated oil procurement costs and drove imports to a record high, while exports grew on chip shipments, government data showed Thursday.

The preliminary data from the Finance Ministry showed Japan's imports of crude oil recovered to the level before the United States and Israel launched attacks on Iran in late February, severely disrupting transportation through the Strait of Hormuz.

Overall imports of the fuel rose 5.5 percent from a year earlier to 12.11 million kiloliters, the first increase in four months. Japan previously depended on the Middle East for over 90 percent of its oil imports.

Imports of oil from the Middle East continued to decline, falling 32.8 percent to 7.18 million kiloliters, but shipments from the United States surged over nine fold to 4.39 million kl in July, the data showed.

But the procurement from alternate sources came at a higher cost. The value of overall imports of the fuel surged 87.8 percent to 1.41 trillion yen, reflecting elevated crude oil prices coupled with transportation and other costs from longer shipping routes.

Costs to import 1 kl of crude oil surged 78 percent to 116,380 yen, the data showed.

For July, the total trade deficit expanded with both imports and exports posting double-digit gains and rising to the highest levels since comparable data became available in January 1979.

Imports climbed 27.8 percent to 12.15 trillion yen from a year earlier as costs to purchase crude oil increased, while rising prices also boosted the value of shipments of semiconductors and other electronic devices, and nonferrous metals, the data showed.

Exports rose 23.2 percent to 11.51 trillion yen, advancing at the highest pace since October 2022, on robust shipments of autos to the United States and semiconductor and other electronic devices to China, it said.

By country, exports to the United States increased 22 percent to 2.1 trillion yen and imports jumped 58 percent to 1.81 trillion yen, with the size of the surplus shrinking for the eighth straight month.

Japan ran a trade deficit with China for the 64th straight month, with shipments bound for the Asian neighbor rising 25.8 percent to 2.01 trillion yen and purchases gaining 26.2 percent to 2.78 trillion yen.

Export and import figures for the United States and China were also the highest since data became available in 1979.

Article source:   https://mainichi.jp/english/articles/20260820/p2g/00m/0bu/010000c

Foreign Visitors to Japan: Updated Aug. 20, 2026

Foreign visitors to Japan hit 3.44 mil. in July, new record for month.

Ideas

By now after years of seeing significant increases in foreign Visitors to Japan, foreign tourism might be considered an economic driver as it perhaps now causes an increase in Japan's overall GDP growth. 

But at the same time, there are some in Japan who think maybe now Japan has hit the over-tourism stage in some areas such and Kyoto and Osaka, which is causing some Japanese residents to be unsure of larger increases in foreign tourism in Japan.

It was not too long ago, just before the pandemic that many in South Korea were boycotting Japanese products and traveling to Japan for a short weekend vacation was not very popular.

But as times change, many South Korean don't even think twice about taking a weekend trip to Japan as the flight from Seoul Gimpo to Tokyo Haneda is only a two hour flight and now company employees in South Korea can easily extend the trip to three days with a day off on Friday or Monday.

And Taiwan, being just a little farther can do the same too as both Taiwan and South Korea can enjoy greater purchasing power with the weak Japanese yen which means everything is cheaper for them.

Unfortunately, there always seems to be some kind of diplomatic challenge between China and Japan as whether warranted or not Japan seems to be sometimes says things that China doesn't seem to like.

However, even though the Chinese government cautioned Chinese citizens from traveling to Japan, which is like directive not to go, it seems that 482,200 Chinese citizens ignored the supposed order and still went to Japan.

Maybe like Spain and France in Europe, Japan is the new hot spot to go to in Asia as it seems 17 markets set new visitor records which might have been unheard of even back ten years or so ago.

Yes, but the dates might be a little off as the rumor about a natural disaster was actually in the summer of 2024 not 2025, but then again the article might be talking about another possible natural disaster which could be true as Japan seems to get a lot natural disasters and rumors of natural disasters.

While foreign tourism is up there are other areas of concern in Japan such as the new or latest immigration rules which are beginning to turn away those who want to live and work in Japan which maybe many foreign tourists know nothing about.

As Japan wants and needs foreign tourism money they don't want any more foreigners, it seems, living and working Japan at this time. 

Unfortunately, there are always going to be foreign tourists in every country that don't have manners and do things that the local population doesn't like, such as noise and garbage disposal which is very important in Japan and doing it correctly is important.

Yes, foreign tourists should know and understand that they are guests in Japan and should act like guests and be respectful of the local population and its customs and try to do things that the average Japanese citizen would do everyday.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260819/p2g/00m/0sc/035000c

Japan Economy Growth: Ideas Later.

Japan economy up 1.1% in April-June on subsidies, private consumption weak

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Article:

TOKYO (Kyodo) -- Japan's economy grew an annualized real 1.1 percent in the April-June period for a third straight quarterly expansion, helped by government spending to tackle rising prices, the Cabinet Office said Monday, although slower-than-expected private consumption cast a shadow over the outlook.

In the first full quarter to include the impact of the Iran war, which has raised energy prices, gross domestic product adjusted for inflation increased 0.3 percent from the January-March period. Private consumption edged down 0.02 percent for the first fall in eight quarters, highlighting fragile domestic demand.

Economists polled by the Japan Center for Economic Research had forecast an annualized real expansion of 1.67 percent, anticipating a 0.41 percent expansion for private consumption.

The GDP figure was pushed up by a 1.6 percent gain in government consumption following an expanded subsidy program, including aid for high school tuition and school meal fees that began in April.

Meanwhile, private consumption, which accounts for more than half of the economy, fell as the government program made it unnecessary for consumers to spend on school and meal fees, while a tax hike on heated tobacco products from April sapped demand, a Cabinet Office official said.

The upward impact of demand for cars following the abolition of the environmental performance tax at the end of March and for air conditioners ahead of expected price hikes due to tighter energy-saving requirements turned out weaker than expected.

Business investment declined 1.2 percent from the January-March quarter, partly due to reduced orders for software.

Exports rose 0.5 percent and imports fell 1.5 percent, as the effective closure of the Strait of Hormuz due to the Middle East conflict hit crude oil shipments.

The official said a fall in imports helps raise the overall GDP figure.

The outlook for private consumption is murky going forward as the elevated crude oil prices due to the prolonged U.S.-Israeli war with Iran and the weaker yen against the U.S. dollar are set to encourage companies to raise selling prices from fall onwards, analysts say.

The depreciation of the yen inflates import costs for Japan's resource-poor economy.

Household spending in Japan has logged declines even as real wages have risen. Wages logged their sixth straight monthly rise in June as companies raise salaries to retain and attract talent.

"While wage increases seem to have taken hold, consumption sentiment appears cautious due to concerns about future price hikes," said Takeshi Minami, chief economist at the Norinchukin Research Institute.

Despite mounting speculation in the market that the Bank of Japan will lift its policy rate in September, Minami said the government could be uncomfortable with such a decision following the latest GDP data and a recent rise in yields on Japanese government bonds.

"I want to pay close attention to whether BOJ can raise the benchmark policy rate" despite signals of downside risks to the economy, Minami said. Central bank rate hikes would lead to higher government debt-servicing costs.

Nominal GDP increased 1.2 percent from the January-March period, at an annualized rate of 4.8 percent.

Article source:    https://mainichi.jp/english/articles/20260817/p2g/00m/0bu/009000c

Japan Wholesale Prices: Updated Aug. 16, 2026.

Japan wholesale prices up 7.2% in July amid Middle East tensions, AI demand

Ideas

An increase in wholesale prices in Japan seems to be never ending struggle and wholesalers will no doubt pass-on their increased costs to the next in the supply which eventually will be the final retail customer.

The weak Japanese yen, of course is the main variable in the increase in prices as Japan is a resource-poor country and has to import much of what it needs and is constantly being squeeze by global prices fluctuations.

Japanese households have probably felt or seen the increase in prices for a very long time and probably wonder when is it going to end as household budgets are constrained and disposable income gets less and less in many households in Japan.

For the upper middle households or higher, probably the prices increase are only glitch on the radar screen but for the middle income, lower income, and fixed income groups the prices increases can be significant strain on their finances and their everyday lives.

Yes, its quite possible that there might be rate increase in September as the current BOJ seems to much different than the previous BOJ which was very reluctant to increase the key due the idea that the Japanese economy was much to weak to handle a rate increase.

The 2 percent inflation target has been on the BOJ's radar for many years and hasn't been able to do much about it, and probably was hoping that conditions would change naturally which hasn't happened yet.

Its seems despite the interventions of the US and Japan working closely together to try and stem the weak yen, it hasn't really responded favorably in that direction as its still relatively weak and probably is going stay that way for the time being, until Japan's key interest rate is more in line with the US key interest rate.

The US rate, at the present time, stands between 3.5 and 3.75 percent while the Japan rate is at 1.0 percent which is probably causing much of the variance between the US dollar and the Japanese yen at this time.

For a very long time many Japanese companies were reluctant to pass-on their increased costs to the next in the supply chain including the final retail customer as they felt customers were a vital link and they were all in it together, but those days seems long gone as profit margins get thinner and thinner and companies no longer can depend on banks to help them so they have to pass-on their costs to either stay in business or satisfy share-holders who only seem to care about the next quarters' numbers.

Of course the Middle East situation has caused the price of products from that region to increase significantly and prices from the region are probably going to remain high for a very long time unfortunately.

Prices related to products from the Middle East region might not decrease much in the coming months as companies will keep prices relatively high due to the increase in supply chain disruptions the increase shipping disruptions as it all adds up and will remain high companies feel their profits margins can't get back to some kind of normalcy.

Like any product related to supply and demand, AI demand will increase the prices of many products and who knows exactly where it will end as its possible the AI used in products will continue to increase which means prices for products that use AI in them will continue to increase.

Imports prices most likely increased due the fact that the weak Japanese yen has increased the price of import and then add in the Middle East situation which also increased the price of many products into Japan.

For exports, most likely, the US tariff situation, and Japanese cars and products has calmed down and US consumers are back to buying Japanese products again after a period of uncertainty related to the tariff situation.

And yes, as Japan has once again become more of a player related to AI after its companies were for a while not so robust in the AI and semi conductor market as been able been to gain some market leverage and its now in a much stronger position again.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260813/p2g/00m/0bu/024000c

Japan Bankruptcies: Updated Aug, 14, 2026.

Japan bankruptcies in July top 1,000 for 2nd straight month

Ideas

Its unfortunate that any Japanese company has to file for bankruptcy as most likely the company and the employees have families that are significantly affected because of the the bankruptcy.

And its even more unfortunate that probably most if not all of the bankruptcies are related to small Japanese companies due to either labor shortage challenges and or increased cost challenges or both.

It would good, if the Japanese government could find a way to help these small companies with subsidies to help them during this period, but at the same time, some might say too much government help or interference in the market or economy would hinder the overall market or economy situation.

Its unfortunate, but a given fact, that in a market economy, there are going to those who enter the market and those who exit the market and some again would say normal market operations are more fair and just as it signals who should be in the market and who should exit a market.

Whats most unfortunate, if a large well know name brand company was considering bankruptcy but had thousands of employees and maybe thousands more suppliers and contractors, then the government might consider stepping in to help that company as there would thousands of jobs lost and the supply chains would be significantly disrupted.

But there seems to be no one coming to the aid of Japanese small companies with only a few employees or a few hundred employees at the most as they are not that important overall related to large name-brand companies in Japan.

As there is a supposed labor shortage in Japan now many workers know thatAn companies are willing or know companies need to increase their wages to attract or keep workers and its a significant strain on small companies that don't have the resources needed to increase wages and again, there doesn't seem to be much help or relief from the government or even local Prefectures to help small businesses in Japan.

And yes, a weaker yen is causing havoc with imports and increased prices as many companies  now and their profits margins are constantly under stress and it seems like an never ending struggle for many small companies now in Japan.

It seems no matter which industry or sector a small company is in they are under siege and can't seem to get out of it unless, again, they can find a way to get some kind of temporary help from their local prefecture or the overall government.

It might be a little too early to blame some bankruptcies on AI as mismanagement and the use of AI, at this time, could be a major contributor as companies are still learning how to use AI and many still don't know how or what to do with it.

For the service sector, which normally has very thin profit margins increases in labor costs and increases in raw material and energy costs probably caused most of the bankruptcies instead of AI mismanagement. 

Once again, its very unfortunate that any small company has to go bankrupt as again there are people and families involved and maybe, even with small companies, suppliers and supply chains are disrupted one way or another.

The truth is, maybe some of the bankrupt companies should never have been in business in the first place but at the same time, who is to say who should or should be able to pursue their dreams of owning a small company as again unfortunately, due to the mechanics of a market economy, there are going to be some that do well and some that unfortunately have to exit the market.

Have a nice day!

Article source:   https://mainichi.jp/english/articles/20260810/p2g/00m/0bu/025000c