Inside William Pesek’s outlook on inflation and new Japan PM Takaichi
- Adam German
- Oct 8
- 2 min read
Speaking to CNBC’s Squawk Box Asia on October 6th, journalist and author William Pesek offers sharp insight into the challenges confronting Japan’s new Prime Minister Sanae Takaichi and the broader economic forces shaping the nation’s outlook.
From stubborn inflation and market volatility to the political uncertainty within the ruling LDP, Pesek unpacks the factors driving Japan’s fragile recovery and the risks that could define the next twelve months.
Particularly important to the residential real estate market is the discussion around inflation and real wage growth. If real wages cannot overcome inflation, then property affordability could soften buyer demand in the mid-to-long term.
Key Topics Covered
Veteran journalist William Pesek warns that Japan’s revolving-door politics may continue, predicting Prime Minister Takaichi could face the same short tenure that has defined recent leaders.
The Liberal Democratic Party’s internal identity crisis is driving instability as it struggles to hold power amid a changing economic and social landscape.
Inflation remains Japan’s most pressing threat, with Takaichi’s plan to double down on Abenomics likely to weaken the yen and drive prices higher.
Low productivity and rising wages could fuel more inflation, creating a cycle that Japan’s policymakers appear unprepared to break.
Bond markets are flashing warning signs, with long-term yields hitting their highest levels since 1999 as investors react to Japan’s growing fiscal risks.
The Bank of Japan is treading carefully, holding off on major tightening despite inflation running above target, while quietly shifting from bonds to ETFs to avoid market disruptions.
A populist wave is reshaping Japan’s political landscape, with new nationalist movements gaining traction as younger voters express frustration over stagnant wages and limited opportunity.
Takaichi’s leadership will test Japan’s balance between nationalism and pragmatism, as she seeks to maintain stability while addressing voter discontent.
Corporate Japan remains in limbo, awaiting clarity on trade, investment, and how Takaichi will manage ties with both the U.S. and neighboring countries.
