Japan's inflation rises to 2.9% in September

Business Oct 24, 2025

Japan's inflation hit 2.9% in September 2025, up from 2.7% the month before, mainly due to a renewed rise in energy costs and continued increases in food prices.
With core inflation also at 2.9%, all eyes are now on the Bank of Japan's policy meeting next week for any hints about interest rate changes.

Takaichi's government faces challenge of rising prices, defense spending

Rising prices are making everyday life more expensive for people in Japan, just as the new Prime Minister Sanae Takaichi—who took office this week with strong public support—is pushing for a big increase in defense spending by March 2026.
The government now faces the tricky task of tackling inflation while boosting military budgets, all under pressure from global allies and ongoing economic uncertainty.