Japan Consumer Prices Rise 1.8% in July as Food Costs Climb

Japan's nationwide core consumer price index climbed 1.8% in July compared to a year ago, reflecting a faster acceleration in inflation for the second straight month. The increase was driven by rising food costs and a resurgence in energy prices, which surpassed a sharp drop in rice prices. Specifically, food prices, excluding fresh items, surged 3.0% from a year earlier, while energy prices grew by 0.6%, after declining slightly in June.

In contrast, rice prices fell by an unprecedented 11.6% from a year ago, marking the steepest decline in 20 years. The typhoon No. 18, also known as Soudelor, is expected to strengthen into a powerful storm as it approaches Okinawa early next week, posing a risk of strong winds and rough seas. On August 21, Japan executed 58-year-old death row inmate Sunao Takami for a 2009 pachinko parlor fire in Osaka that killed five and injured 10, marking the first execution under the Takaichi administration.

The government is also considering dismantling the Cool Japan Fund, a public-private investment vehicle aimed at promoting Japanese anime, food culture, and other industries abroad, due to its accumulating losses. Meanwhile, Japan's government plans to initiate studies on extending Shinkansen service to Shikoku, potentially cutting travel times between Osaka and cities like Tokushima, Takamatsu, and Matsuyama to around 90 minutes.