On October 27, 2026 (Reiwa 8), the Cabinet Office released its Monthly Economic Report for October. The overall assessment reads: "The economy is recovering at a moderate pace, although attention should be paid to the effects of the situation in the Middle East." The reference to natural disasters, present in September, was removed. Exports were revised to weaker wording and business sentiment to brighter wording. This is useful background when setting sales and purchasing outlooks.Every month the Cabinet Office publishes how the Japanese economy is doing, in a document called the Monthly Economic Report. The October edition, released on October 27, says the economy is recovering slowly, but that we need to watch the situation in the Middle East. The worry about natural disasters, which appeared up to September, is not written this time.
Items whose wording changed from the September report
September reportOctober report
Overall assessmentRecovering moderately; watch the Middle East and natural disastersRecovering moderately; watch the Middle East
ExportsShowing movements of picking upMovements of picking up have recently paused
Business sentimentRoughly flat; outlook somewhat cautiousImprovement is seen overall
Domestic corporate goods pricesThe pace of increase has recently slowedRecently flat
Consumer pricesRising moderatelyRising recently
Items whose wording changed from last month (yes) and stayed the same (no)
○Applies: Exports (sales to other countries)
○Applies: Business sentiment (how companies see their business)
○Applies: Consumer prices (the prices we pay when shopping)
×Does not apply: Household spending (what people buy)
×Does not apply: Business investment (what companies spend on equipment)
A CDS is a derivative in which protection against a borrower's default (such as bankruptcy) is bought and sold. The buyer pays a fixed coupon, like a guarantee fee, at regular intervals, and the seller settles when a credit event occurs at the reference entity. Trading is mainly over the counter between financial institutions, and JSCC, the clearing house of Japan Exchange Group, has cleared CDS since July 2011. Based on publications from the exchange group, the Bank of Japan, the FSA and the BIS, this feature explains the mechanism, uses, trading flow and where to check prices and outstanding amounts.A CDS is a way of buying and selling an insurance-like promise in case a company cannot pay back its money. The buyer pays a set amount regularly, and if that company goes bankrupt, the buyer receives money from the seller. It is mainly traded between financial institutions such as banks and securities firms, not a product you buy at an ordinary shop.
Read more →Bank of JapanEconomic news (Japan & world)
The Bank of Japan holds a Monetary Policy Meeting on October 29-30, with the basic view of its Outlook Report and the Governor's press conference scheduled for release on the 30th. At the latest meeting on September 18, it decided by a 7-2 vote to encourage the uncollateralized overnight call rate to move at around 1.25%. Based on BOJ publications, this article explains how to read the meeting and what companies thinking about borrowing and pricing should keep in mind.The Bank of Japan holds a meeting on October 29 and 30 to decide the guide for interest rates, which is like the price of money. At the September meeting, it decided to aim for about 1.25% as the guide rate for lending between banks. Seven of the nine members agreed and two disagreed.
Read more →Bank of JapanEconomic news (Japan & world)
On October 27, 2026 (Reiwa 8), the Bank of Japan released the preliminary Services Producer Price Index for September 2026. The all-items average stood at 115.5 (2020 average = 100), up 3.7% from a year earlier and 0.3% from the previous month. The pace widened from 3.5% in August. Transportation and postal services, which include ocean freight, rose 8.4%; excluding international transportation the average rose 2.9%. The figures are useful for logistics and outsourcing budgets and price negotiations.Carrying goods, storing them, renting an office, running an advertisement. Companies buy many such services from other companies. The Bank of Japan turns those prices into a single number, and on October 27 it published the figure for September. It was 3.7% higher than the same month a year earlier.
Read more →Ministry of Finance, Bank of JapanEconomic news (Japan & world)
According to the Ministry of Finance's JGB interest rate data, the yield on the 10-year Japanese government bond on October 26 was 2.824%, down from 3.092% on October 1. The 1-year yield was 1.649% and the 30-year 3.884%, so the longer the maturity, the higher the yield. Based on MOF and BOJ publications, this article explains how to read long-term rates and what to check for borrowing and funding plans.When the country needs money, it issues IOUs called government bonds and borrows from many people. The interest rate on them is the 'government bond yield'. According to the Ministry of Finance, on October 26 it was 1.649% for 1 year, 2.824% for 10 years and 3.884% for 30 years. The longer the borrowing, the higher the rate.
Read more →Bank of JapanEconomic news (Japan & world)
A price index is the sum of price movements of individual items, each multiplied by a weight. The Bank of Japan's Services Producer Price Index takes the 2020 average as 100 and distributes a total weight of 1,000 across its items. Using the preliminary September figures released on October 27 as an example, this article sets out how to read how much each item moved the total.When you combine the prices of many goods and services into a single number, the ones traded in large amounts are counted heavily and the ones traded in small amounts are counted lightly. That heaviness is called the weight. In the Bank of Japan's index of prices of services traded between companies, a total of 1,000 is divided among 146 services.
Read more →Ministry of FinanceTrade rules & company lawFrom October 31, 2026 (Reiwa 8) to October 30, 2031 (Reiwa 13) — five years
On October 27, 2026 (Reiwa 8), the Ministry of Finance announced its decision to impose anti-dumping duties of 3.6% to 42.1% on nickel-based stainless steel cold-rolled strip and sheet originating in the People's Republic of China and in the separate customs territory of Taiwan, Penghu, Kinmen and Matsu. The duties run for five years, from October 31, 2026 to October 30, 2031, at the same rates as the provisional measure in force since July 9. Companies importing these materials will need to review their purchase costs.If a company abroad sells goods to Japan at a price far below what it charges at home, companies in Japan making the same goods lose their customers no matter how hard they try. In such cases the government can place an extra tax on those imports. On October 27 the Ministry of Finance decided to place an extra tax of 3.6% to 42.1% on nickel-based stainless steel sheet coming from China and Taiwan.
Read more →Ministry of FinanceEconomic news (Japan & world)
What the news calls an anti-dumping duty is, under Japanese law, a duty on unfairly low-priced imports. It is an additional duty imposed where imports of goods sold at an export price below normal value cause injury to the domestic industry producing the same goods. Using the nickel-based stainless steel case announced on October 27, 2026 (Reiwa 8), this article sets out the path from investigation to imposition, and what it means for importers and for domestic producers.If a company abroad sells goods to Japan at a price far below what it charges at home, companies in Japan making the same goods cannot win no matter how hard they try. So the government can place an extra tax on such imports. In Japanese law this is called a duty on unfairly low-priced imports. It is allowed under international agreements as long as the rules are followed.
Read more →Statistics Bureau of Japan, Bank of JapanEconomic news (Japan & world)
Nationwide consumer prices for September, released on October 23, rose 2.1% from a year earlier for all items, 2.1% for all items excluding fresh food (core), and 2.4% for all items excluding fresh food and energy (core-core). The BOJ uses these indexes differently to see the underlying trend in prices. Based on publications from the Statistics Bureau and the BOJ, this article explains the differences and how to read the outlook.The rate at which the prices of things go up is called the inflation rate. In September, compared with a year earlier, the usual index rose 2.1%, the index without vegetables, fish and other fresh food also rose 2.1%, and the one that also leaves out energy such as electricity and gasoline rose 2.4%. The numbers change a little depending on what is left out.
This page summarizes and explains materials published by government agencies. Content is as of the date each article was checked. For decisions in your own case, always consult the original sources and professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence. To search by category or keyword, go to Find articles.