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]

Core Viewpoint - The Bank of Japan suggests that the impact of rising food prices, including rice, may dissipate in the near future [1] Group 1 - The Bank of Japan is monitoring the inflationary pressures stemming from food prices [1] - There is an indication that the recent increases in food prices may not be sustained over the long term [1] - The central bank's assessment reflects a broader economic outlook regarding consumer price stability [1]

Group 1 - The core viewpoint of the article is that the U.S. Department of Agriculture projects a 2.7% year-over-year increase in food prices by 2026 [1]

Core Insights - A global food price surge driven by climate change is confirmed by recent research, linking extreme weather events to significant increases in food prices [1][2][3] - The impact of extreme weather on food prices is expected to become more common as climate change intensifies, posing new challenges for central banks, especially in emerging economies [1][3] Group 1: Extreme Weather Events and Food Prices - Extreme weather events have led to unprecedented price increases in various food items, such as a 50% rise in olive oil prices in Spain due to drought and an 89% increase in onion prices in India following a heatwave [1][2] - In South Korea, record summer heat caused cabbage prices to surge by 70%, while in Japan, rice prices rose by 48% after a heatwave [2] - In the U.S., drought conditions in California and Arizona resulted in an 80% jump in vegetable prices in November 2022 [2] Group 2: Global Trade and Price Transmission - Food price shocks are transmitted globally through trade networks, exemplified by a threefold increase in cocoa prices in the UK following droughts in Ghana and Ivory Coast [3] - Policy decisions can exacerbate the impact of climate-induced food price increases, as seen in 2010 when Russia's wheat export ban led to a spike in global wheat prices [3] - Countries heavily reliant on imports, like the UK, are particularly vulnerable to overseas climate impacts [3] Group 3: Inflation and Economic Implications - Rising food prices contribute to overall inflation rates, with the UK experiencing an unexpected rise in June 2023 to 3.6%, partly attributed to food price increases [1] - The chief researcher noted that extreme temperatures directly influence inflation rates, with food being a major driving factor [1]

Core Insights - A survey by Japan's credit agency (TDB) indicates that a wider variety of food prices in Japan are expected to rise in July, with an increase four times higher than the same period last year [1] - 195 major food manufacturers plan to raise prices on 2,105 products in July, with an average increase of 15%, which is five times higher than the number of price hikes recorded last year [1]

Core Viewpoint - The Governor of the Bank of England, Andrew Bailey, has indicated that the rise in food prices is a significant concern for the central bank [1] Group 1 - The Bank of England is closely monitoring the impact of rising food prices on the economy [1]

Core Viewpoint - The Governor of the Bank of Japan, Kazuo Ueda, acknowledges the impact of rising food prices on households [1] Group 1 - The Bank of Japan is aware of the challenges posed by increasing food prices to family budgets [1]

Core Insights - The report from the Japan Imperial Database indicates that 1,932 food items are set to increase in price in June, approximately three times the amount from the same period last year [1] - The rise in prices is attributed to various factors including increased raw material costs, higher production costs due to rising energy prices, labor shortages leading to increased labor costs, and elevated logistics costs [1] - Cumulatively, 16,224 food items have already seen price increases in 2025, with expectations that the total number of items with price hikes will exceed 20,000 for the first time since 2023 [1] Price Increase Trends - The report highlights that boxed rice is among the items with the highest price increases due to the surge in rice prices [1] - The overall trend reflects a significant impact on the food industry, driven by multiple cost pressures [1]

Core Viewpoint - The Governor of the Bank of Japan, Kazuo Ueda, emphasizes the need for cautious evaluation of the impact of rising food prices on core inflation, as the underlying inflation level is now closer to the 2% target compared to a few years ago [1] Group 1 - The current level of underlying inflation is approaching the 2% target, indicating a shift in economic conditions [1] - The Bank of Japan is focusing on the effects of food price increases on core inflation metrics [1]

Core Insights - The Governor of the Bank of Japan, Kazuo Ueda, indicated that there remains uncertainty regarding winter bonuses and the spring wage negotiations for the following year [1] - It is expected that the rise in food prices will gradually stabilize [1] Group 1 - Uncertainty exists in the context of winter bonuses and upcoming wage negotiations [1] - Anticipation of stabilization in food price increases [1]