Japan and Deflation: Ideas Later.

Japan minister urges caution on declaring end to deflation

Article to be deleted after ideas.

Article:

TOKYO (Kyodo) -- The government must make a "careful judgment" on declaring an end to deflation, economic and fiscal policy minister Minoru Kiuchi said Friday, as the Bank of Japan prepares to assess whether it has achieved its 2 percent inflation target.

Speaking at a press conference, Kiuchi stressed the need for caution over a declaration that the country has emerged from a sustained decline in prices. The government says it needs to make sure that Japan will not slip back into deflation before making such a declaration.

The BOJ is expected to decide at its two-day policy meeting from Thursday whether underlying inflation has reached 2 percent, nearly 14 years after it set the target in January 2013.

Japan's core consumer prices, which exclude volatile fresh food, have risen by more than 2 percent annually for four consecutive years since 2022, prompting some market participants to argue that the target has already been achieved.

The central bank has stressed the need to assess whether inflation is sustained once temporary factors are excluded, and whether wages are rising steadily.

The government and the BOJ issued a joint statement in January 2013 that included a commitment to monetary easing to achieve the 2 percent target.

Asked whether the statement would be revised if the government declared an end to deflation, Kiuchi declined to comment, saying the question was hypothetical.

Article source:   https://mainichi.jp/english/articles/20261023/p2g/00m/0bu/033000c

Japan Dept. Stores: Ideas Later.

Japan dept. stores see record duty-free sales, shoppers in Sept.

Article to be deleted after ideas.

Article:

TOKYO (Kyodo) -- Department stores in Japan posted record September duty-free sales and shopper numbers, driven by an increase in inbound tourists and a weaker yen, industry data showed Friday.

Duty-free sales in the reporting month jumped 25.3 percent from a year to around 49.64 billion yen ($316 million), up for the seventh straight month, while the number of tax-free shoppers grew 5.9 percent to roughly 491,000, the first increase in two months, according to the Japan Department Stores Association.

The growth came as visitors from countries and territories including South Korea, Taiwan and Hong Kong rose thanks to public holidays as well as the yen's depreciation, the association said.

Average spending per customer climbed 18.3 percent from a year earlier to around 101,000 yen, the data showed.

Meanwhile, the number of customers from China dropped roughly 15 percent amid a lingering diplomatic rift, but their purchases increased around 7 percent.

Japan-China relations have been strained since Prime Minister Sanae Takaichi said last November in parliament that a Chinese attack on Taiwan could constitute a "survival-threatening situation" prompting a response by the Self-Defense Forces in support of the United States. Angered by the remarks, Beijing advised its citizens not to travel to Japan.

Excluding duty-free sales, domestic department store sales climbed 2.1 percent in September, rising for the third straight month, partly supported by strong autumn clothing sales as temperatures fell earlier than usual and a long holiday season boosted shopping demand, the association said.

Overall sales at 169 stores operated by 68 companies rose 4.2 percent from a year before to 443.42 billion yen, marking the ninth consecutive month of year-on-year growth.

Article source:  https://mainichi.jp/english/articles/20261023/p2g/00m/0bu/057000c

Japan Trade Deficit: Ideas Later. To be continued.

Japan logs 2.8 tril. yen 1st-half trade deficit amid Middle East crisis

Ideas to be deleted after ideas.

Article:

TOKYO (Kyodo) -- Japan logged a trade deficit of 2.82 trillion yen ($17.8 billion) in the first half of fiscal 2026, covering April through September, as soaring crude oil prices drove up import costs amid turmoil in the Middle East, government data showed Wednesday.

Ideas

Japan is a resource-poor country which means it has to import much of what it needs and as  such global prices can be a major challenge for many importers and wholesalers in Japan and of course the weak Japanese yen have a major affect too on import products and commodities.

Article

The deficit also widened due to a weaker yen, nearly doubling from a year earlier and extending the streak of half-year trade deficits to 11 consecutive periods, the Finance Ministry said in a preliminary report.

Ideas

A deficit doesn't mean Japan didn't have a lot of exports and exporting is a major economic driver for the economy but again the weak yen, which can be both positive and negative but at this time the weak yen with increased global prices is having serious challenges for the Japaneae economy.

Article

Imports rose 20.4 percent to 66.28 trillion yen, a record high for a half-year period since comparable data became available in 1979. The increase was driven by higher imports of crude oil and electronic components.

Ideas

Again, Japan is a resource-poor country and has to import almost everything which makes it very vulnerable to volatile global prices and now the Middle East situation crude oil is causing havoc globally not just in Japan.

And then there is so-called AI craze and high demand for products which drives up the cost of many electronic components everywhere globally and look no further than the price of computers on Amazon to see how since 2025 everthing related to electronics has increased.

Article

Exports climbed 18.4 percent to a record 63.46 trillion yen, supported by automobiles to the United States and European Union countries and semiconductor-related electronic components particularly to other Asian markets.

Ideas

Japan is a major export economy and exports are one of the few economic drivers that is keeping the economy going in the right direction, and like South Korea, it has very few economic drivers it can depend on the grow the economy as South Korea depends heavily on Samsung and SK Hynx and and while its good but when its not so good both economies depending on just a few economic drivers is risky.

Japan has just recently gotten back into the semiconductor game and its nowhere near catching up to Taiwan or South Korea but its moving forward in the right direction.

Article

By product, exports and imports of semiconductor-related electronic components both rose sharply, increasing 50.8 percent and 63.2 percent, respectively, from a year earlier.

Ideas

To be continued....

Crude oil imports from the United States increased more than fivefold in volume and nearly ninefold in value, while crude oil imports from the Middle East plunged 44.5 percent in volume amid disruptions around the Strait of Hormuz, a ministry official said.

The average exchange rate during the first half was 159.54 yen to the dollar, representing a 9.2 percent year-on-year depreciation of the Japanese currency.

In September alone, Japan posted a trade deficit of 536.5 billion yen, marking its fifth consecutive month in the red. Exports increased 16.7 percent and imports rose 18.9 percent from a year earlier.

Imports from the United States surged 44.8 percent to 1.57 trillion yen, a record high for the month of September, driven by crude oil.

Exports of automobiles to China dropped 59.8 percent in value, due largely to a decline in shipments of hybrid vehicles, the official said.

Article source:   https://mainichi.jp/english/articles/20261021/p2g/00m/0bu/032000c

Japan Foreign Visitors: Updated Oct. 21, 2026.

Foreign visitors' spending in Japan hits record 7 tril. yen in Jan.-Sept

Ideas

Right now, as it seems, foreign visitor spending in Japan might be one of the few aeas where Japan has explicitly sees economic growth as, domestic consumer spending is not where is should be and never has been for a very long time.

Of course the weak Japanese yen plays a major role in that spending as it gives foreign visitors more purchasing power to spend a lot and actually spend a few more days in Japan than a strong yen would give.

Taiwan and Japan seem to have had very good relations for a very long time and for example whatever happened during the last war seems to have been completly forgotten which can't be said for some other countries in Asia.

And again, the weak Japanese yen is giving foreign visitors more purchasing power which means they have more money to use and spend in Japan again maybe spend a few more days in Japan do whatever they like and want.

If the average spending in Japan was 233,677, that is over $2,000 US dollars so foreign visitors seem to be spending a lot in Japan and it might be those who go Japan are not the lower-middle class or even the regular middle class but maybe the upper middle class type consumers and they have plenty to spend as needed to spend where ever.

However, this might be a trend but the number of foreign visitors to Japan fell which means, t that Japan maybe has reached its saturation point or reached it point that Asia foreign visitors have now been there done that and less are going to Japan.

And then there is the possibility, but no tangible proof yet, that the over-tourism taxes that places like Kyoto has implement might actually be starting to cause some foreign visitors to stay away and then there is the arrival tax and departure tax, if the've been implemented yet that might also be causing some visitors to stay away.

Yes, unfortunately, as usual, Japan for better or worse sometimes or many times keeps saying things that cause diplomatic challenges with China and China basically said to its citizens to stay away from Japan which many seem to be doing these days.

But at the same time if there were/was over 358 million yen spent in Japan by Chinese visitors it means there still many Chinese going to Japan these days.

For a long time, Japan was not a favorite place for many South Korean visitors as they would often go to Vietnam and China but it seems that has changed a lot as the very short trip from Seoul Gimpo to Tokyo Haneda, which I've taken many times, is only a two hour flight and you could easily make the trip a three day weekend, taking Friday off from your job, and coming back on Sunday using the same route.

And again, even though the numbers are down,  3.3 million visitors from China is still a large number of visitors which has suggested spent 358 million yen, which again suggests China has moved out of the lower middle income group to the middle income to even the upper middle income group and now many Chinese want to travel and spend their money and as the yen is weak they too have more purchasing power in Japan.

And its a little surprising that 2.5 million visitors from the US have traveled to Japan as it often takes 8 to 12 hours to get from even LA or SF to get Japan and airline tickets from the US are not cheap these days.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20261021/p2g/00m/0bu/052000c

South Korea Producer Prices: Updated Oct. 21, 2026

Producer prices up for 2nd month in Sept. on higher prices of agricultural goods

Ideas

Having lived and worked in South Korea for many years I experienced the high fruit and vetgetables prices at places like Homeplus and Emart many times compared to the prices in the US or what they used to be in the US.

South Korea, whether good or not so good, has multiple layers of middlemen which tend drive up the price of products before they get to the supermarket or even the Saturday and Sunday markets in South Korea.

And now, like everywhere else these days, wholesalers and producers are quick to pass-on their increased costs to the next in the supply chain including the final retail customer.

Unfortunately, despite what the media says South Korea is not the high-tech behemoth that everyone thinks it is as 99 percent of businesses in South Korea are small or midsize which employ more than 80 percent of the workforce, and many of these small and midsize companies just can't cope with their profits margins beings squeezed due to an increase in raw material costs, energy costs, and even due to the large number of middlemen being squeezed from increasing costs up and down the supply chain.

Producer prices, seem to be very volatile being up and down many times during the year and its hard or even difficult for there to be any real exact estimate on prices which is what producers need to keep their profits margins in line with staying in business these days.

Again, unfortuanly, even an increase of 7.9 percent or 7.9 percent is too much for many of these small and mid-size companies as again, they have very thin profit margins that they have to work with and again 7.7 and 7.9 might not seem like much but it's just too much for many of these businesses.

It really doesn't take that long for the producer prices to each the supermarkets as again producers and even other middlemen seem to be very quick in passing-on their increased prices as they have no choice as they have to keep their profit margins in check or they go out of business very easily these days.

And yes, of course during Chuseok or the Korean thanksgiving period everyone is going to increase prices due the increase in demand and especially livestock and fishery products during the Chuseok holidays.

Consumers in South Korea and especially Korean households are under a lot of economic stress as prices keep increasing and of course, unfortunately, not everyone is in the upper middle income where they can, for the most part, ignore the increase in prices and there is a large number of lower income and even fixed income households that even a 1.3 percent increase in prices can be the difference between good food or less than good food to each each night.

Have a nice day!

Article source:  https://www.koreatimes.co.kr/economy/20261021/producer-prices-up-for-2nd-month-in-sept-on-higher-prices-of-agricultural-goods

Uniglo Price Increases: Update Oct. 21, 2026.

Uniqlo to raise average selling prices by about 4%

Ideas

Many companies in Japan still feel that customers are like family and stakeholders and are reluctant to increase prices too much as they fear they will lose some or many customers.

At the same time, due to very thin profit margins these days, many companies feel they have no choice but to increase prices even if only a little and again to not cause too much discomfort for their customers. 

The weak Japanese yen, which can be both a positive and negative for the Japanese economy is a significant negative for importers and as Japan is a relatively resource-poor country and they need to import much of what they need including for example Uniqlo most likely importing needed raw materials for its products.

An increase from 6,990 to 7,990 is only 1,000 yen but for some it might be enough to get a customer to re-think if they really need or want the Kando Jacket and maybe they can find something similar at GU, which is Uniqlo's sister store which usually has lower prices.

Its seems that maybe Uniqlo is feeling the affects of the weak Japanese yen and the increase in raw material costs and they are now increasing prices across the board on many products and even in store services that they used to do.

It seemed for a very long time, or maybe it just seemed that way, that Uniqlo for the most part, kept it prices just low enough to attract many groups of customers and including those in the middle income groups, even the low income groups, and even more the fixed income groups as the customers in those groups could depend on finding quality products at a relatively low price but maybe now those days might be slipping away.

Companies will always give the standard reason or response to why they are increasing prices and it might be true but its seems companies should or can find a more pleasant way to communicate with customers who might be inclined to look for alternatives and maybe some might now think Uniqlo prices have increased too much for them.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20261020/p2g/00m/0bu/010000c

Japan Convenience Stores: Updated Oct. 20, 2026.

Japan convenience store Sept. sales up 0.5% on electronic cigarette demand

Ideas.

Convenience stores, some would say are like the 7th wonder of the world as they are worlds apart from convenience stores anywhere else in the world.

And as usual, as whenever there is going to be tax increase consumers will rush to buy those products as they don't want to pay a few extra yen for them or it.

Also the increase in sales might just be related to an increase in prices not necessarily an increase in traffic into the convenience stores.

It's amazing that Japan actually has seven major convenience store operators as you would think that competition would force some of them to leave the market. But it's like Japan automakers where there are eight car companies and even though some of them are subsidaries or the larger companies they all operate independently of each other, and for the most part they are all thriving except of maybe Nissan who was struggling for a while but now seems to be in better financial shape.

And again, average spending might have increased but again due to an increase in prices it shows average spending is actually up when in reality it might not be.

And as expected, the number of customers was down for the 15th consecutive month and some have suggested customers are buying more at regular supermarkets as some of the things they want and need are actually cheaper there.

And here is the supposed real story about what is going on with Japanese convenience stores. In the major metro areas such as Kyoto, Osaka, and Tokyo convenience stores are doing much better as many foriegn tourists go there not only to buy things but also for sightseeing as they've heard about how good and pratical they are from everything from fresh food, to some banking services, some post office services, not to mention ATM services all in one place.

And then there is the rest of the story about how in the rural areas or regions some convenience store operators are struggling to make ends meet. For example, some or many of the rural area stores are operated by retirees and or those who had jobs at major Japanease companies and either needed or wanted to run their own businesses and as a convenience store is a relatively easy entry type business many or some opted to get franchise with a convience store operator.

And then the challenges came with strict operating hours, some requiring them to stay open for 24 hours when there was only the husband and wife team and they couldn't find any students in the rural areas to work for them and even though in the metro areas, many have foriegn students working there, there are very few foreign students in the rural areas in Japan.

And there it the ideas of the original operators taking more of the sales from the rural stores and leaves little for the husband and wife team to live on sometimes and then there is the idea of wholesale prices that the husband and wife team have to pay and they aren't allowed to shop around for lower prices and they have to take the prices as given by the original operators, which again, sometimes leaves the husband and wife team with almost nothing.

But the convenience stores in the major metro areas are doing very good, so it makes it look like all convenience stores in Japan are doing good which they aren't.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20261020/p2g/00m/0bu/032000cf