FX.co ★ Japan Coincident Index Revised Lower

Japan's coincident economic index dipped to 112.8 in August 2025, revising down from the preliminary estimate of 113.4 and decreasing from 114.1 noted in July. This represents the index's lowest point since February 2024, highlighting ongoing inflation challenges, with significant increases in rice prices and the expanding influence of U.S. trade policies. Although the overall economy continues on a path of moderate recovery, exports and industrial output have remained stagnant, and rising prices have adversely affected consumer sentiment and spending. On the monetary side, the Bank of Japan maintained its short-term interest rate in July, keeping borrowing costs at their peak since 2008. Nonetheless, it revised its core inflation forecast for fiscal year 2025 to 2.7%, up from the 2.2% projected in April.