TOKYO: Japan’s core consumer prices marked a ninth straight month of annual gains in September but failed to accelerate from the previous month, underscoring the central bank’s huge task as it struggles to meet an ever-elusive 2 percent inflation target.
Most of September’s scant inflation was driven by continued rises in energy costs, which were partly offset by falling cellphone bills — another sign that companies still baulk at raising prices for fear of stalling a fragile recovery in private consumption.
Still, the Bank of Japan is set to largely maintain its current inflation forecasts at a policy meeting next week, blaming stagnant inflation on factors such as corporate efforts to boost productivity.
The nationwide core consumer price index, which includes oil products but excludes volatile fresh food prices, rose 0.7 percent in September from a year earlier, matching August but lower than a median market forecast of 0.8 percent.
“Private consumption was probably weak in July-September and gains in household income may have slowed due to weak summer bonus payments,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
“There’s still quite some distance from the BOJ’s 2 percent target, so monetary policy will be steady for the time being.”
A 7.6 percent rise in energy prices made up most of the consumer price growth, a sign inflation was still driven by temporary factors rather than sustained strength in demand.
Stripping away the effect of fresh food and energy, consumer prices rose 0.2 percent in September from a year ago, data from the internal affairs ministry showed.
Core consumer prices in Tokyo, available a month before the nationwide data, were up 0.6 percent in October from a year earlier, against a median forecast for a 0.5 percent rise. It was the fastest annual pace since March 2015, a potential source of comfort for the BOJ.
Japan’s economy expanded at an annualized 2.5 percent in the second quarter as consumer and corporate spending picked up, with steady growth likely to be sustained in coming quarters.
Japan is experiencing near full employment, and wholesale prices rose in September at the fastest annual rate in almost nine years as raw material costs surged.
Japan consumer prices rise for 9th straight month
Japan consumer prices rise for 9th straight month
Arab food and beverage sector draws $22bn in foreign investment over 2 decades: Dhaman
JEDDAH: Foreign investors committed about $22 billion to the Arab region’s food and beverage sector over the past two decades, backing 516 projects that generated roughly 93,000 jobs, according to a new sectoral report.
In its third food and beverage industry study for 2025, the Arab Investment and Export Credit Guarantee Corp., known as Dhaman, said the bulk of investment flowed to a handful of markets. Egypt, Saudi Arabia, the UAE, Morocco and Qatar attracted 421 projects — about 82 percent of the total — with capital expenditure exceeding $17 billion, or nearly four-fifths of overall investment.
Projects in those five countries accounted for around 71,000 jobs, representing 76 percent of total employment created by foreign direct investment in the sector over the 2003–2024 period, the report said, according to figures carried by the Kuwait News Agency.
“The US has been the region's top food and beverage investor over the past 22 years with 74 projects or 14 projects of the total, and Capex of approximately $4 billion or 18 percent of the total, creating more than 14,000 jobs,” KUNA reported.
Investment was also concentrated among a small group of multinational players. The sector’s top 10 foreign investors accounted for roughly 15 percent of projects, 32 percent of capital expenditure and 29 percent of newly created jobs.
Swiss food group Nestlé led in project count with 14 initiatives, while Ukrainian agribusiness firm NIBULON topped capital spending and job creation, investing $2 billion and generating around 6,000 jobs.
At the inter-Arab investment level, the report noted that 12 Arab countries invested in 108 projects, accounting for about 21 percent of total FDI projects in the sector over the past 22 years. These initiatives, carried out by 65 companies, involved $6.5 billion in capital expenditure, representing 30 percent of total FDI, and generated nearly 28,000 jobs.
The UAE led inter-Arab investments, accounting for 45 percent of total projects and 58 percent of total capital expenditure, the report added, according to KUNA.
The report also noted that the UAE, Saudi Arabia, Egypt, and Qatar topped the Arab ranking as the most attractive countries for investment in the sector in 2024, followed by Oman, Bahrain, Algeria, Morocco, and Kuwait.
Looking ahead, Dhaman expects consumer demand to continue rising. Food and non-alcoholic beverage sales across 16 Arab countries are projected to increase 8.6 percent to more than $430 billion by the end of 2025, equivalent to 4.2 percent of global sales, before exceeding $560 billion by 2029.
Sales are expected to remain highly concentrated geographically, with Egypt, Saudi Arabia, Algeria, the UAE and Iraq accounting for about 77 percent of the regional total. By product category, meat and poultry are forecast to lead with sales of about $106 billion, followed by cereals, pasta and baked goods at roughly $63 billion.
Average annual per capita spending on food and non-alcoholic beverages in the region is projected to rise 7.2 percent to more than $1,845 by the end of 2025, approaching the global average, and to reach about $2,255 by 2029. Household spending on these products is expected to represent 25.8 percent of total expenditure in 13 Arab countries, above the global average of 24.2 percent.
Arab external trade in food and beverages grew more than 15 percent in 2024 to $195 billion, with exports rising 18 percent to $56 billion and imports increasing 14 percent to $139 billion. Brazil was the largest foreign supplier to the region, exporting $16.5 billion worth of products, while Saudi Arabia ranked as the top Arab exporter at $6.6 billion.
