TOKYO, Oct 24, 2025 (BSS/AFP) - Inflation in Japan accelerated last month, official data showed Friday, in a blow to new Prime Minister Sanae Takaichi ahead of a major policy speech later in the day.

Shigeru Ishiba, Takaichi's predecessor, survived barely a year in office, with voters hammering the ruling party in elections in part because of rising prices.

Takaichi said immediately after becoming Japan's first woman prime minister on Tuesday that tackling inflation was a priority and instructed her cabinet draw up new measures.

Data released by the internal affairs ministry showed the rate of inflation accelerating to 2.9 percent in September from 2.7 percent the previous month.

Excluding volatile fresh food prices, the rate also rose to 2.9 percent from 2.7 percent. Without fresh fruit and also energy, inflation eased to 3.0 percent from 3.3 percent.

A particular cause of voter anger over the past year has been skyrocketing prices, most notably for rice.

This was linked to a very hot summer in 2023 and panic-buying after a "megaquake" warning last year, amongst other factors.

Rice prices in September were up 48.6 percent year-on-year.

This represents an easing from recent months however. In June the price was up around 100 percent and in July around 90 percent.

- Big spender -

Takaichi, 64, has long advocated for more government spending and easy monetary policy to spur growth, and her appointment has boosted Japan's stock market to record highs.

Since taking office, however, she has said monetary policy decisions are left to the central bank, the Bank of Japan (BoJ).

Takaichi will next week meet US President Donald Trump, who imposed a 15 percent tariff on US-bound exports, including the important auto sector.

The BoJ, under governor Kazuo Ueda, has been gradually "normalising" its super easy monetary policy.

Japan's inflation has been above its two-percent target for some time.

But the vast majority of economists expect it to hold interest rates steady at its next meeting next week because of uncertainty.

- Defence -

Takaichi's policy speech was expected at around 2:00 pm (0500 GMT) on Friday.

Takaichi was expected to announce that the target of spending two percent of GDP on defence will be brought forward by two years, media reports said.

Tokyo's previous target was to be spending two percent of gross domestic product in the 2027-28 fiscal year.

But Takaichi wants this achieved in the current tax year running to March 31, 2026, Jiji Press, Kyodo News and other media reported on Wednesday and Thursday.

Trump was due to arrive in Japan early next week in between a Southeast Asian Nations (ASEAN) summit in Malaysia and an Asia-Pacific Economic Cooperation summit in South Korea.

The US president has also heaped pressure on other US allies to boost defence spending, including the EU and NATO members.

In the speech Takaichi will also say that China is "an important neighbouring country and it is necessary to build a constructive and stable relationship" with Beijing, reports said.

But she will say that "there are concerns regarding security and economic security".

She will say that Japan needs foreign workers but that "illegal acts and deviations from the rules by some foreign nationals have resulted in the sense of anxiety and unfairness is being felt".

"While drawing a clear line from xenophobia, we will take a firm stand against such acts," she will say, according to the reports.

The populist Sanseito party, which calls immigration a "silent invasion", has been making gains in recent elections.

A new poll published Thursday by the Yomiuri Shimbun daily put support for Takaichi's cabinet at 71 percent, compared with 34 percent in September for predecessor Ishiba.