Latest news with #policymakers
Japan Times
10 hours ago
- Business
- Japan Times
Japan private-sector rice imports soar in May
Japan's private-sector rice imports rocketed higher in May as the country grapples with supply shortages that have become a major headache for both consumers and policymakers. Some 10,600 metric tons of so-called staple rice — which is consumed at meals as opposed to rice used for feed or ingredients in other products — were imported by companies such as trading firms and wholesalers despite high levies. While that's still a small amount compared to the roughly 7 million tons eaten by the Japanese each year, it represents a huge jump from the 3,004 tons imported for the entire last financial year that ended in March. Rice prices in Japan have doubled since last year after an extreme heat wave hit the 2023 harvest which was then exacerbated by stockpiling following an earthquake and additional demand from a boom in tourism. To tackle the problem, the government began releasing stockpiled rice directly to retailers from late May, allowing some consumers to snap up 5 kilograms of rice for about ¥2,000 ($13.85) — less than half of average supermarket prices. Restaurants and consumers are increasingly turning to U.S. brands in search of cheaper prices. Japan takes a heavily protectionist stance towards its most basic food and traditionally has not had to rely on imports. Private-sector imports are subject to a levy of ¥341 per kilogram. The government can also import 100,000 tons of staple rice tariff-free under World Trade Organization rules. It decided to hold a tender for tariff-free imported rice this month, earlier than the usual auction in September, to help lower soaring prices.
CNA
17 hours ago
- Business
- CNA
EU leaders agree to renew sanctions against Russia for another six months
EU leaders have agreed to renew sanctions against Russia for another six months. The punitive measures include the freezing of more than €200 million in Russian central bank assets. The announcement comes as policymakers gathered in Brussels, days after NATO members promised to ramp up defence spending. William Denselow reports.
New York Times
19 hours ago
- Business
- New York Times
The Fed's Preferred Inflation Gauge Stayed Tame in May
Price pressures have stayed relatively muted in recent months, surprising economists and policymakers who expected U.S. inflation to have flared up by now because of President Trump's tariffs. New data on Friday confirmed that this trend continued in May, but it provided little comfort to those bracing for inflation to reaccelerate this summer. Consumer prices, as measured by the Federal Reserve's preferred gauge, rose just 0.1 percent last month even as the Personal Consumption Expenditures price index ticked up slightly to 2.3 percent compared to the same time last year. That was a step up from April's 2.1 percent annual pace and brought the 12-month index further from the Fed's 2 percent target. 'Core' prices, which strips out volatile food and energy costs, also rose 0.2 percent. Compared to the same time last year, that index is now up 2.7 percent. The data, which was released by the Commerce Department, is being closely watched by the officials at the central bank, who have become increasingly divided over when and by how much to lower interest rates this year. The fissures stem from differing opinions about how significantly Mr. Trump's tariffs will stoke inflation and the resilience of the labor market, which has shown signs of cooling. Want all of The Times? Subscribe.
Zawya
a day ago
- Business
- Zawya
ECB should change inflation target, researchers to tell policymakers
FRANKFURT - The ECB should abandon targeting headline inflation and focus instead on price growth in discretionary spending to protect the bloc's poorest, a paper to be presented to policymakers at the bank's preeminent research conference argued on Friday. The ECB targets inflation at 2% and a soon-to-be-concluded review will not even discuss the definition of the target as policymakers have long argued that using a different measures, like underlying inflation, or figures incorporating housings costs, could sow confusion. But the paper written for the ECB Forum on Central Banking in Sintra, Portugal next week argues that the current framework disproportionately hurts low income workers and leads to an inferior outcome for society. The logic is that after an interest rate hike, discretionary spending contracts significantly more than needed, triggering a fall in labour demand in sectors producing discretionary goods and services. "These sectors employ a larger share of low-income, hand-to-mouth workers, whose consumption is highly sensitive to income fluctuations," the paper agued. Thus, the initial drop in discretionary spending cascades into a broader decline of overall demand, amplified by this impact on lower-income households. "By targeting discretionary inflation, the central bank provides households with an incentive to smooth their discretionary spending; in turn, this ameliorates the negative employment effects on hand-to-mouth workers in discretionary industries," the paper argued. Although this would lead to a more accommodative policy stance, stabilising discretionary spending inflation allows the economy to more effectively close the so-called output gap, or the difference between potential and actual output, the paper argued.
Yahoo
a day ago
- Business
- Yahoo
ECB should change inflation target, researchers to tell policymakers
FRANKFURT (Reuters) -The ECB should abandon targeting headline inflation and focus instead on price growth in discretionary spending to protect the bloc's poorest, a paper to be presented to policymakers at the bank's preeminent research conference argued on Friday. The ECB targets inflation at 2% and a soon-to-be-concluded review will not even discuss the definition of the target as policymakers have long argued that using a different measures, like underlying inflation, or figures incorporating housings costs, could sow confusion. But the paper written for the ECB Forum on Central Banking in Sintra, Portugal next week argues that the current framework disproportionately hurts low income workers and leads to an inferior outcome for society. The logic is that after an interest rate hike, discretionary spending contracts significantly more than needed, triggering a fall in labour demand in sectors producing discretionary goods and services. "These sectors employ a larger share of low-income, hand-to-mouth workers, whose consumption is highly sensitive to income fluctuations," the paper agued. Thus, the initial drop in discretionary spending cascades into a broader decline of overall demand, amplified by this impact on lower-income households. "By targeting discretionary inflation, the central bank provides households with an incentive to smooth their discretionary spending; in turn, this ameliorates the negative employment effects on hand-to-mouth workers in discretionary industries," the paper argued. Although this would lead to a more accommodative policy stance, stabilising discretionary spending inflation allows the economy to more effectively close the so-called output gap, or the difference between potential and actual output, the paper argued.
