Japan Core Inflation Slows to 2-Year Low

2026-02-19 23:50 By Jam Kaimo Samonte 1 min. read

Japan’s core consumer price index, which excludes fresh food but includes energy, rose 2% year-on-year in January 2026, cooling from 2.4% in December and marking the weakest pace of growth in two years.

The reading was in line with market expectations and aligned with the inflation target of the Bank of Japan, suggesting no immediate need to adjust monetary policy settings.

The BOJ has indicated that price growth is likely to moderate further, partly due to additional government measures such as utility subsidies, as well as base effects from price surges a year earlier.

Prime Minister Sanae Takaichi rolled out fiscal initiatives aimed at alleviating cost-of-living pressures, including proposals to suspend the 8% tax on food and reduce gasoline taxes.

Nonetheless, authorities emphasized that they remain focused on underlying inflation trends rather than temporary or one-off factors.



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