Japan's consumer price inflation fell to 0.2 percent year-on-year in September 2019 from 0.3 percent in the previous month and well below market expectations of 0.4 percent. It was the lowest inflation rate in seven months, mainly pushed down by lower gasoline prices. The latest reading raises the chances of further stimulus after the Bank of Japan decided to leave policy unchanged during its September meeting but left the window wide open for easing, calling for a review of prices and the economy in October. Annual core consumer inflation, which excludes fresh food, was at 0.3 percent in August, the lowest since April 2017. Inflation Rate in Japan averaged 2.96 percent from 1958 until 2019, reaching an all time high of 24.90 percent in February of 1974 and a record low of -2.50 percent in October of 2009.
Inflation Rate in Japan is expected to be 2.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Japan to stand at 2.00 in 12 months time. In the long-term, the Japan Inflation Rate is projected to trend around 1.70 percent in 2020, according to our econometric models.