Core Insights - Japan's core Consumer Price Index (CPI) excluding fresh food rose by 2.9% year-on-year in September, marking the 49th consecutive month of increase [1] - The primary driver of the price increase was the accelerated rise in energy prices, with electricity and gas prices turning from declines of 7% and 5% respectively in the previous month to increases of 3.2% and 2.2% [1] - The price increases for food and durable consumer goods have moderated compared to last year, but the price of ordinary japonica rice surged by 48.6%, while chocolate and coffee bean prices rose by 50.9% and 64.1% respectively [1] - Hotel accommodation fees increased by 5.8% year-on-year, influenced by rising demand for inbound tourism [1] - Experts believe that the new government's potential implementation of more accommodative fiscal and monetary policies may lead to a depreciation of the yen, further exacerbating inflationary pressures in Japan [1]

Core Insights - Japan's core Consumer Price Index (CPI) excluding fresh food rose by 2.9% year-on-year in September, reaching 111.4, marking the 49th consecutive month of increase and a resurgence in price growth since May [1] Group 1: Price Trends - The increase in consumer prices is primarily driven by a surge in energy prices, with electricity and gas prices turning from a year-on-year decline of 7% and 5% in the previous month to increases of 3.2% and 2.2% respectively [1] - While the price increases for food and durable consumer goods have moderated compared to last year, the price of ordinary japonica rice surged by 48.6%, and chocolate and coffee bean prices rose by 50.9% and 64.1% respectively [1] - Hotel accommodation fees increased by 5.8% year-on-year, influenced by the growing demand for inbound tourism [1] Group 2: Economic Policy Implications - Media and experts suggest that the new Japanese government's intention to adopt more aggressive fiscal and monetary policies may lead to further depreciation of the yen, potentially exacerbating inflation in Japan [1]

Core Points - The new Prime Minister of Japan, Sanae Takaichi, held her first press conference to discuss her views on economic and diplomatic issues [1][2] - Takaichi expressed apologies to the Japanese public for the prolonged formation of the new cabinet and emphasized the importance of strong economic and diplomatic security policies for political stability [2] - She plans to instruct her cabinet to develop new economic measures to address the current rising prices in the upcoming cabinet meeting [2] - Takaichi prioritized economic policy over the consideration of dissolving the House of Representatives [2] - She aims to strengthen the Japan-U.S. alliance and hopes to meet with U.S. President Trump soon to enhance mutual trust [2] Economic Policy - Takaichi plans to address the issue of rising prices through new economic strategies in the first cabinet meeting [2] - The focus will be on creating strong economic policies to ensure political stability [2] Diplomatic Relations - The Japan-U.S. alliance will be the cornerstone of Takaichi's foreign policy [2] - She expressed a desire to meet with U.S. President Trump to deepen trust between the two nations [2]

Core Insights - The October "Beige Book" indicates that U.S. prices continue to rise due to the impact of increased tariffs, affecting all Federal Reserve districts [1][2] - The report highlights that rising import and service costs have accelerated input cost growth, leading some manufacturing and retail companies to pass these costs onto customers [1][2] - Many Federal Reserve districts anticipate that increasing uncertainty will dampen economic activity, with the risk of a prolonged government shutdown posing a downside risk to growth [1][2] - The labor market shows generally weak demand across various regions and industries [1][2] Summary by Categories Price Trends - Prices in the U.S. have been rising from early September to mid-October, influenced by tariff increases [1][2] - Input costs are increasing due to higher import and service costs, prompting some companies to transfer these costs to consumers [1][2] Economic Activity - There is a growing concern that heightened uncertainty will negatively impact economic activity [1][2] - A potential long-term government shutdown is identified as a significant downside risk to economic growth [1][2] Labor Market - Labor demand is reported to be generally low across different regions and sectors [1][2]

Core Viewpoint - The ongoing political deadlock in the U.S. is contributing to economic uncertainty, with rising prices and declining consumer spending highlighted in the latest Beige Book report [1] Economic Indicators - The Beige Book indicates further increases in U.S. prices, while consumer spending has seen a slight decrease [1] - Labor demand remains weak, suggesting potential challenges for economic growth [1] Market Reactions - The U.S. dollar and Treasury bonds are showing weakness, reflecting market concerns over global trade [1] - Gold prices in New York futures and London spot markets are maintaining levels above $4200 per ounce [1] Federal Reserve Insights - Milan, the economic advisor nominated by Trump and a Federal Reserve governor, expressed a desire for more significant interest rate cuts [1]

Group 1 - In October, the number of food and beverage price increases in Japan is expected to exceed 3,000, marking a significant rise from 2,989 reported in late August [1] - The price increase is attributed to rising raw material costs, logistics, and labor expenses, with notable examples including Coca-Cola's price hike from 194 yen to 216 yen per 500ml bottle [1] - The price of rice products is also expected to rise significantly, with packaged rice potentially increasing by up to 17% due to high rice prices [1] Group 2 - The average price of rice in Japanese supermarkets remains high, with a reported average of 4,246 yen for 5 kilograms, maintaining above 4,000 yen for three consecutive weeks [2] - Retailers are concerned that high rice prices may lead consumers to reduce purchases, impacting profit margins, while budget-conscious consumers are opting for cheaper 2024 crop rice [2] - The Japanese government is set to terminate electricity and gas subsidies that had been in place to alleviate costs for households, which previously saved families around 1,000 yen per month [2] Group 3 - In 2023, Japan experienced a significant "price hike wave," with over 32,000 food items seeing price increases, the highest in 30 years, driven by rising raw material costs and yen depreciation [3] - The total number of price-increased items in Japan is projected to exceed 12,520 from the previous year, potentially reaching around 20,000 [3] - The trend of price increases is expected to continue into 2025, fueled by rising service-related costs [3]

Group 1 - The core viewpoint is that consumers are feeling exhausted by rising prices, as stated by Federal Reserve official Barkin [1] Group 2 - The report highlights the ongoing concerns regarding inflation and its impact on consumer sentiment [1] - It suggests that the current economic environment is challenging for consumers, indicating potential implications for spending behavior [1]

Core Viewpoint - The election for the new president of Japan's ruling Liberal Democratic Party (LDP) has commenced, with five candidates vying for the position, which is expected to lead to the next Prime Minister of Japan [1]. Candidate Overview - The candidates include: - Toshimitsu Motegi (69), former LDP Secretary-General, Harvard graduate, and a member of the House of Representatives since 1993 [2]. - Yoshihide Suga (64), current Chief Cabinet Secretary, also a Harvard graduate, first elected to the Senate in 1995, and has held various ministerial positions [2]. - Shinjiro Koizumi (44), current Minister of Agriculture, Forestry and Fisheries, known as a political "supernova" from a political family [4]. - Takashi Kobayashi (50), former Minister for Economic Security, a Harvard graduate, and has held various roles within the LDP [4]. - Sanae Takaichi (64), the only female candidate, a former Minister for Economic Security, and has been in politics since 1993 [4][6]. Election Dynamics - The LDP presidential election is scheduled for October 4, with results announced the same day. Key issues include forming a majority governance framework, addressing rising prices, and rebuilding the LDP [7]. - The election is expected to be competitive, with local votes being crucial, as both National Diet members and local party members have equal voting power of 295 votes each [7]. - Following the election of the new LDP president, a Prime Ministerial election will be held in the National Diet, where the new president is expected to succeed Yoshihide Suga as the next Prime Minister of Japan [7].

Core Insights - Japan's core Consumer Price Index (CPI) excluding fresh food rose by 2.7% year-on-year in August, marking the first decline below 3% since November of the previous year [1] - The primary driver of price increases in Japan remains the rise in food prices, with significant increases observed in grains, beverages, meat, and eggs [1] - The government subsidies on summer electricity and gas bills have somewhat mitigated the inflationary pressures [1] - Economists anticipate a slowdown in price increases in the latter half of the year, raising questions about the timing of potential interest rate hikes by the Bank of Japan [1] Price Changes - Ordinary japonica rice prices saw a year-on-year increase of 68.8%, while coffee beans, chocolate, and egg prices rose by 47.6%, 49.4%, and 16.4% respectively [1] - The previous year's "rice shortage" contributed to the high price levels, which is a factor in the current decline in inflation rates [1]

Economic Growth - Kyrgyzstan's GDP for the first eight months of the year reached 1.0421 trillion som (approximately 11.9 billion USD), reflecting an 11.0% year-on-year growth [1] - Significant growth was observed in the pharmaceutical, food processing, building materials, and chemical industries, which were key drivers of industrial growth [1] Sector Performance - The construction sector experienced a remarkable growth of 34.8% [1] - Wholesale and retail trade grew by 11.6%, while agriculture saw a modest increase of 2.4% [1] Price Trends - Consumer prices in Kyrgyzstan rose by 5.1% compared to December of the previous year, with food prices experiencing a higher increase [1] - Factors contributing to the price rise include reliance on imported food, international market price increases, rising fuel and transportation costs, and higher public service prices [1] Trade Dynamics - The total import and export volume for the first seven months was 8.664 billion USD, marking a 6.4% year-on-year decline [1] - Exports decreased by 13.3%, while imports fell by 4.8% [1] - Trade with members of the Eurasian Economic Union amounted to 2.911 billion USD, showing a 3.2% year-on-year increase, with Russia and Kazakhstan being the main trading partners [1] Economic Outlook - The current economic situation is characterized by strong domestic demand and pressure on foreign trade [2] - Increased government investment in infrastructure and efforts to diversify the industrial sector are expected to stabilize economic growth, although rising prices and external trade pressures pose challenges [2]