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Kuwait Times
26-05-2025
- Business
- Kuwait Times
Japan core inflation tops forecasts as rice prices almost double
TOKYO: Japanese inflation spiked to a two-year high in April, data showed Friday, as rice prices almost doubled, turning focus on the central bank as it mulls more interest rate hikes amid the Trump administration's trade war. The uptick heaps pressure on Japan's Prime Minister Shigeru Ishiba ahead of July's elections and after a minister was forced to resign over a gaffe about the staple while officials dipped into emergency stockpiles. Core inflation excluding fresh food hit 3.5 percent last month, the internal affairs ministry said, its highest since January 2023 and well up from the 3.2 percent in March. Rice prices soared an eye-watering 98.4 percent year-on-year, slightly more than the previous month's increase. The rocketing cost of the staple is growing into a crisis for the government, which was already struggling to win back the public after losing its parliamentary majority in an election last year. Factors behind the shortfall include poor harvests due to hot weather in 2023 and panic-buying prompted by a 'megaquake' warning last year. Record numbers of tourists have also been blamed for a rise in consumption while some traders are believed to be hoarding the grain. The government began auctioning its stockpile in February, having previously tapped them during disasters. This is the first time since the stores were built in 1995 that supply chain problems are behind the move. Excluding energy and fresh food, the consumer price index rose 3.0 percent, from 2.9 percent in March, Friday's data showed, while the overall unadjusted figure was unchanged at 3.6 percent. Underlying inflation has been above the BoJ's target rate of two percent for around three years, and while the central bank began lifting interest rates last year, it has paused them recently as it assesses the impact of Trump's tariffs. With Japanese officials heading to Washington for more talks on slashing the US president's tariffs, the Bank of Japan is holding off any more increases for now. The BoJ warned at its last meeting this month that tariffs were fuelling global economic uncertainty and revised down its economic growth forecasts for the country. 'Consumer price inflation will slow very gradually,' said Stefan Angrick at Moody's Analytics. 'US tariffs and tariff threats will dampen growth in Japan and globally, further weighing down demand-driven price pressures. The Bank of Japan isn't done hiking, but it's not moving just yet. Tariff haze will keep the central bank on hold for the time being. 'We expect another rate hike in early 2026.' Adding to the problems for Ishiba, his farm minister resigned this week after comments that caused public fury. Taku Eto told a gathering over the weekend that he had 'never bought rice myself because my supporters donate so much to me that I can practically sell it'. After Eto's resignation, the prime minister said: 'I apologize to Japanese people' as 'it is my responsibility that I appointed him'. 'That rice prices are remaining high is not a one-time phenomenon but is a structural one, I think. We have to have thorough discussions on this and they (rice prices) have to fall, of course,' he said. Marcel Thieliant at Capital Economics said that 'weekly rice prices are showing signs of stabilisation so rice inflation should start to soften again before long'. Jun Takazawa at HSBC added: 'The various government measures as well as an ongoing moderation in global energy and import prices are expected to bring inflation down to more sustainable levels in the second half of this year.' – AFP
Qatar Tribune
26-05-2025
- Business
- Qatar Tribune
Japan core inflation tops forecasts as rice prices almost double
Agencies Japanese inflation spiked to a two-year high in April, data showed Friday, as rice prices almost doubled, turning focus on the central bank as it mulls more interest rate hikes amid the Trump administration's trade war. The uptick heaps pressure on Japan's Prime Minister Shigeru Ishiba ahead of July's elections and after a minister was forced to resign over a gaffe about the staple while officials dipped into emergency stockpiles. Core inflation excluding fresh food hit 3.5 percent last month, the internal affairs ministry said, its highest since January 2023 and well up from the 3.2 percent in March. Rice prices soared an eye-watering 98.4 percent year-on-year, slightly more than the previous month's increase. The rocketing cost of the staple is growing into a crisis for the government, which was already struggling to win back the public after losing its parliamentary majority in an election last year. Factors behind the shortfall include poor harvests due to hot weather in 2023 and panic-buying prompted by a 'megaquake' warning last year. Record numbers of tourists have also been blamed for a rise in consumption while some traders are believed to be hoarding the grain. The government began auctioning its stockpile in February, having previously tapped them during disasters. This is the first time since the stores were built in 1995 that supply chain problems are behind the move. Excluding energy and fresh food, the consumer price index rose 3.0 percent, from 2.9 percent in March, Friday's data showed, while the overall unadjusted figure was unchanged at 3.6 percent. Underlying inflation has been above the BoJ's target rate of two percent for around three years, and while the central bank began lifting interest rates last year, it has paused them recently as it assesses the impact of Trump's tariffs. With Japanese officials heading to Washington for more talks on slashing the US president's tariffs, the Bank of Japan is holding off any more increases for now. The BoJ warned at its last meeting this month that tariffs were fuelling global economic uncertainty and revised down its economic growth forecasts for the country. 'Consumer price inflation will slow very gradually,' said Stefan Angrick at Moody's Analytics. 'US tariffs and tariff threats will dampen growth in Japan and globally, further weighing down demand-driven price pressures. The Bank of Japan isn't done hiking, but it's not moving just yet. Tariff haze will keep the central bank on hold for the time being. 'We expect another rate hike in early 2026.' Adding to the problems for Ishiba, his farm minister resigned this week after comments that caused public fury. Taku Eto told a gathering over the weekend that he had 'never bought rice myself because my supporters donate so much to me that I can practically sell it'. After Eto's resignation, the prime minister said: 'I apologize to Japanese people' as 'it is my responsibility that I appointed him'. 'That rice prices are remaining high is not a one-time phenomenon but is a structural one, I think. We have to have thorough discussions on this and they (rice prices) have to fall, of course,' he said. Marcel Thieliant at Capital Economics said that 'weekly rice prices are showing signs of stabilisation so rice inflation should start to soften again before long'.
Japan Today
23-05-2025
- Business
- Japan Today
Ishiba presses Trump on tariffs in phone call ahead of new talks
Prime Minister Shigeru Ishiba responds to questions after a telephone conversation with U.S. President Donald Trump, at the prime minister's office in Tokyo on Friday. Japan's Prime Minister Shigeru Ishiba said Friday that he had again pressed U.S. President Donald Trump on tariffs, in a phone call ahead of fresh talks on easing the levies. Japan, a key U.S. ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium. Trump also announced 24 percent "reciprocal" tariffs on Japan in early April, but later paused them along with similar measures on other countries until early July. Ishiba said he spoke with Trump for 45 minutes on Friday morning -- Thursday evening in Washington -- and that a "broad range of topics were discussed, including tariffs and economic security". "I conveyed to him Japan's position on U.S. tariffs," Ishiba told a news conference in Tokyo, adding that there was "no change to our calls for the removal of tariffs. "As I've said before, it's not just about tariffs but about investment. There will also be no change to our position that Japan and the U.S. will cooperate on generating employment in the U.S.," he said. The comments came as Japan's tariffs envoy, economic revitalization minister Ryosei Akazawa, left for Washington for a third round of talks. "The series of tariff measures taken by the U.S. are regrettable. We'll strongly demand a review of these measures," Akazawa told reporters at Tokyo's Haneda airport. "But we have to reach an agreement, so it has to be win-win for both sides. We'll listen carefully to the various proposals and ideas of the U.S. side, and look for common ground between the two sides," he said. Public broadcaster NHK and other Japanese media reported, citing government sources, that U.S. Treasury Secretary Scott Bessent would not attend the talks this time. Akazawa would travel again to Washington on May 30, the reports said. Trump's 25-percent auto tariffs are particularly painful for Tokyo, with roughly eight percent of all Japanese jobs tied to the sector. Early this month, the Trump administration also slapped a new 25 percent import tax on auto parts including engines and transmissions. At the White House in February, Ishiba had promised Trump that yearly Japanese investment would increase to $1 trillion. "Although the recent U.S.-China and U.S.-UK trade deals indicate that Washington is aiming to de-escalate trade tensions, Japan-U.S. negotiations have made little headway," said Stefan Angrick at Moody's Analytics. "Japan's position as the world's largest foreign investor in the U.S. hasn't shielded it from tariff threats, so promising more investment is an unconvincing bargaining chip," he added. © 2025 AFP
The Sun
23-05-2025
- Business
- The Sun
Japan PM presses Trump on tariffs ahead of new talks
TOKYO: Japan's Prime Minister Shigeru Ishiba said Friday that he had again pressed US President Donald Trump on tariffs, in a phone call ahead of fresh talks on easing the levies. Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium. Trump also announced 24 percent 'reciprocal' tariffs on Japan in early April, but later paused them along with similar measures on other countries until early July. Ishiba said he spoke with Trump for 45 minutes on Friday morning -- Thursday evening in Washington -- and that a 'broad range of topics were discussed, including tariffs and economic security'. 'I conveyed to him Japan's position on US tariffs,' Ishiba told a news conference in Tokyo, adding that there was 'no change to our calls for the removal of tariffs'. 'As I've said before, it's not just about tariffs but about investment. There will also be no change to our position that Japan and the US will cooperate on generating employment in the US,' he said. The comments came as Japan's tariffs envoy, economic revitalisation minister Ryosei Akazawa, left for Washington for a third round of talks. 'The series of tariff measures taken by the US are regrettable. We'll strongly demand a review of these measures,' Akazawa told reporters at Tokyo's Haneda airport. 'But we have to reach an agreement, so it has to be win-win for both sides. We'll listen carefully to the various proposals and ideas of the US side, and look for common ground between the two sides,' he said. Public broadcaster NHK and other Japanese media reported, citing government sources, that US Treasury Secretary Scott Bessent would not attend the talks this time. Akazawa would travel again to Washington on May 30, the reports said. Trump's 25-percent auto tariffs are particularly painful for Tokyo, with roughly eight percent of all Japanese jobs tied to the sector. Early this month, the Trump administration also slapped a new 25 percent import tax on auto parts including engines and transmissions. At the White House in February, Ishiba had promised Trump that yearly Japanese investment would increase to $1 trillion. 'Although the recent US-China and US-UK trade deals indicate that Washington is aiming to de-escalate trade tensions, Japan-US negotiations have made little headway,' said Stefan Angrick at Moody's Analytics. 'Japan's position as the world's largest foreign investor in the US hasn't shielded it from tariff threats, so promising more investment is an unconvincing bargaining chip,' he added.
Time of India
23-05-2025
- Business
- Time of India
Japan core inflation tops forecasts as rice prices almost double
Tokyo, May 23, 2025 -Japanese inflation spiked at a two-year high in April, data showed Friday, as rice prices almost doubled, turning focus on the central bank as it mulls more interest rate hikes amid Donald Trump's trade war. The news also puts pressure on Prime Minister Shigeru Ishiba ahead of elections in July and after a minister was forced to resign over a gaffe about the national food staple while officials were forced to dip into emergency stockpiles. Core inflation excluding fresh food hit 3.5 percent last month, the internal affairs ministry said, its highest since January 2023 and well up from the 3.2 percent in March. Rice prices soared an eye-watering 98.4 percent year-on-year, slightly more than the previous month's increase. The rocketing cost of a key part of Japanese people's diet is growing into a crisis for the government, which was already struggling to win popularity having lost its parliamentary majority in an election last year. Factors behind the shortfall include poor harvests due to hot weather in 2023 and panic-buying prompted by a "megaquake" warning last year. Record numbers of tourists have also been blamed for a rise in consumption while some traders are believed to be hoarding the grain. The government began auctioning its stockpile last month for the first time since it was started in 1995. Excluding energy and fresh food, the consumer price index rose 3.0 percent, from to 2.9 percent in March, Friday's data showed, while the overall unadjusted figure was unchanged at 3.6 percent. Underlying inflation has been above the BoJ's target rate of two percent for around three years and while the central bank began lifting interest rates last year it has paused them recently as it assesses the impact of Trump's tariffs. With Japanese officials heading to Washington for more talks on slashing the US president's tariffs, the Bank of Japan is holding off any more increases for now. The BoJ warned at its last meeting this month that tariffs were fuelling global economic uncertainty and revised down its economic growth forecasts for the country. "Consumer price inflation will slow very gradually," said Stefan Angrick at Moody's Analytics. "US tariffs and tariff threats will dampen growth in Japan and globally, further weighing down demand-driven price pressures. The Bank of Japan isn't done hiking, but it's not moving just yet. Tariff haze will keep the central bank on hold for the time being. "We expect another rate hike in early 2026." Adding to the problems for Ishiba, his farm minister resigned this week after controversial comments that caused public fury. Taku Eto told a gathering over the weekend that he had "never bought rice myself because my supporters donate so much to me that I can practically sell it". After Eto's resignation, the prime minister said: "I apologise to Japanese people" as "it is my responsibility that I appointed him". "That rice prices are remaining high is not a one-time phenomenon but is a structural one, I think. We have to have thorough discussions on this and they (rice prices) have to fall, of course," he said. Marcel Thieliant at Capital Economics said that "weekly rice prices are showing signs of stabilisation so rice inflation should start to soften again before long".
