Core Viewpoint - Japan experienced record high temperatures in July, with the highest temperature reaching 41.2 degrees Celsius, indicating a trend of extreme weather impacting food prices and overall inflation globally [1] Weather Impact on Food Prices - Extreme weather conditions are driving up the prices of essential food items globally, with a notable increase in prices due to heatwaves [1] - In 2024, a heatwave in East Asia is projected to cause a 70% year-on-year increase in cabbage prices in South Korea and a 48% increase in Japan [1] Economic Implications - The rise in food prices due to extreme weather is expected to exacerbate overall inflation, posing a variable impact on the global economy [1]

Group 1 - Overall inflation met expectations with a seasonally adjusted CPI month-on-month increase of 0.3%, marking the largest single-month rise since January. This led to an unadjusted CPI year-on-year rate of 2.7%, up from 2.4% in May, driven by rising food and energy prices [1] - Core inflation was below expectations, with a seasonally adjusted core CPI month-on-month increase of 0.2%, remaining below the median forecast for the fifth consecutive month. The year-on-year core CPI rose by 2.9%, slightly up from 2.8% in the previous three months, meeting expectations [1] - Key components of core inflation were suppressed due to declines in new and used car prices, as well as decreases in airfare and accommodation costs. Housing prices showed relative moderation, with a monthly increase of 0.2%. The impact of tariff increases was evident in several categories, with furniture prices rising by 1%, the largest increase since January 2022; video and audio product prices up by 1.1%, the largest since February last year; and toy prices increasing by 1.8%, the largest since April 2021 [1] - Rate cut pricing remained unchanged, as higher tariff rates are expected to take effect from August. Economists indicated that the June inflation report is unlikely to prompt the Federal Reserve to cut rates earlier. Futures markets still suggest a significant possibility of the Fed restarting rate cuts in September [1] Group 2 - Following the report's release, the U.S. two-year Treasury yield retraced slight gains, gold experienced volatility, and the three major U.S. stock indices opened mixed [2]

Core Viewpoint - The new Bank of Japan committee member Masu does not strongly disagree with the view that "overall inflation in Japan has not yet reached 2%" [1] Summary by Relevant Categories - **Monetary Policy Perspective** - Masu's stance indicates a continuation of the current monetary policy framework, suggesting that the Bank of Japan may maintain its accommodative measures until inflation targets are more clearly met [1] - **Inflation Outlook** - The statement reflects ongoing concerns regarding Japan's inflation trajectory, emphasizing that the central bank's target of 2% inflation remains unachieved [1]

美联储威廉姆斯：整体通胀接近2%，但基础通胀仍然偏高。 ...

Core Viewpoint - The impact of a 10% tariff on all imported goods on overall inflation is limited, as tariffs cannot be fully passed on to consumers [1] Group 1 - Federal Reserve Governor Waller stated that tariffs will not be completely passed on to consumers, indicating a limited effect on inflation [1] - The overall inflationary impact of imposing a 10% tariff on all imports is considered to be minimal [1]

Core Viewpoint - The Bank of Japan's Governor Kazuo Ueda anticipates a cooling of overall inflation due to tariff measures and a slowdown in global economic growth [1] Group 1 - The expectation of inflation moderation is linked to external factors such as tariff policies [1] - Global economic growth slowdown is identified as a contributing factor to the anticipated decline in inflation [1]