Japan Core Consumer Prices: Updated Oct. 25,, 2025.

Japan's core consumer prices in September rise 2.9% on energy, food costs

Article source: https://mainichi.jp/english/articles/20251024/p2g/00m/0bu/030000c

Ideas

Inflation in Japan has been a major challenge for most consumers in Japan since the pandemic as it really hasn't gone down much at all.

Yet, not to criticize, the Japanese government while attempting to lower inflation has not been able to reduce it much if any at all.

It's quite possible, that the powers to be in Japan have taken the approach that says just let the market be as it is and inflation will eventually begin to subside over time.

Most central banks would prefer to have inflation at or around 2 percent as they feel its a manageable number and it shows an economy is running smoothly, not too fast and not too slow.

Unfortunately, most in Japan might be feeling the effects of inflation as maybe their disposable income gets less and less each month as inflation continues to increase.

Of course the most vulnerable in Japan might be feeling the effects of the increase in inflation the most as they have to spend more of their income on food than other income groups.

Unfortunately, Japan is resource poor country which means it has to import much of what it needs and maybe including much of the food it needs.

At the same time, raw material prices keep going up and energy prices continue to climb and then most likely many producers and importers have to pass-on their increased costs to the next in the supply chain which of course means the final retail customers too.

Rice prices, since the summer of 2024, seemed to be out of control, as there was a supposed shortage of rice which meant or seemed to be everyone including producers and supermarkets horded rice supplies and most families and consumers had to suffer through it, and might still be a major challenge in Japan.

Yes, its not sure, by anyone's guess, that prices are decelerating as prices appear to continue to be high and at the level that is very uncomfortable for most in Japan except for maybe the upper middle class or the higher income groups.

Consumer spending Japan has never been at a level that it helps the economy grow as most Japanese are not big spenders like those in the US used to be, as now even US consumers seem to be spending less as inflation continues somewhat there.

Any little bit helps as maybe the subsidies last year helped Japanese families as even a small decrease in electricity subsidies can have a huge effect on some families's disposable income.

Most durable goods are probably not a daily purchase or even a monthly purchase and most likely are yearly purchases such as a TV, air conditioner or even a washer, or dryer.

As the summer moved slightly toward fall or autumn, the price of air conditioners might have decreased as many places such as Yodobashi Camera, a major appliance store in Japan, lowered their prices to get rid of the old stock to bring the new stock related to AC's that were more inline with providing heat increased cooler temperatures for the summer months

The BOJ, as usual, will look at everything but mostly now will focus on how the US tariff situation is going to effect the Japanese economy in the future and will have to make a decision whether which is more important either inflation or the US tariff situation and the Japanese economy.

Its not going to be an easy decision as choosing one of the other could potentially have an effect on the economy as the BOJ has to decide which is the most important, at the moment, to help the economy.

Have a nice day!