International News 12 June 2025
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Japan's Wholesale Inflation Slows, Easing Pressure on BOJ
In May 2025, Japan's annual wholesale inflation rate decreased due to lower import costs of raw materials, reducing pressure on the Bank of Japan to raise interest rates. However, wholesale food and beverage price increases accelerated despite global uncertainty and weak consumption. The corporate goods price index (CGPI) rose by 3.2% annually in May, which is lower than the expected 3.5% and represents the slowest increase since September. This slowdown may lead to downward pressure on consumer prices in the future. The decline in prices was particularly notable for steel goods, with a 4.8% decrease, followed by chemical products (3.1%) and non-ferrous metal products (2.1%). There are concerns that the BOJ might miss the opportunity to adjust interest rates, especially in view of the significant decrease in inflation expected, and the uncertainties surrounding Japan's tariff talks with the US.
https://internasional.kontan.co.id/news/inflasi-grosir-jepang-melambat-kurangi-tekanan-pada-boj
US-China agree on trade framework, ready to ease restrictions on critical mineral exports
The United States and China have reached an agreement on a framework to further implement the trade truce agreed in Geneva. This involves the easing of restrictions on the export of rare earth minerals and magnets from China, and the partial removal of US export bans. US Secretary of Commerce Howard Lutnick has stated that this agreement solidifies the consensus from the Geneva meeting and the communication between President Donald Trump and President Xi Jinping. In accordance with President Trump's directives, China and the US will take steps to lift their respective export restrictions. China will lift restrictions on rare earth minerals and magnets, while the US will remove some technology export restrictions imposed in response to China's policies. These measures will be taken in a balanced manner. These components play a crucial role in global technology, and this agreement aims to address key obstacles in the trade relationships between the two countries.
Unemployment rises to highest level in almost four years
In the UK, the rate of wage growth decreased and the unemployment rate increased in the three months leading up to April 2025, with salary increases without bonuses reaching 5.2%, the lowest figure since September of the previous year. The unemployment rate also increased to 4.6%, the highest figure recorded since May 2021. This decline was attributed to various factors, including increased social security contributions for companies and a rise in the minimum wage. Furthermore, the data indicated a substantial decline in the number of employees on company payrolls in May. Consequently, the Bank of England may consider reducing interest rates in the near future, with analysts forecasting potential cuts in August and November. In light of recent economic developments, the value of the pound sterling has decreased in relation to the US dollar.