Japan Inflation Holds Steady at 3.6%

Japan’s annual inflation eased to 1.3% in February 2026 from 1.5% in the prior month, the lowest since March 2022. Food inflation remained near a 15-month low (4.0% vs 3.9% in January), driven by the slowest rise in rice prices in 21 months. Price growth also slowed for transport (0.5% vs 0.6%) and clothing (2.1% vs 2.4%). Energy costs stayed negative, with electricity (-8.0% vs -1.7%) and gas (-5.1% vs -2.0%) falling at a steeper rate, reflecting subsidy effects. Education costs fell further (-5.6% vs -5.6%). In contrast, inflation held steady for housing (at 1.0%), healthcare (at 0.4%), and miscellaneous goods (at 0.6%) while accelerating for household items (1.2% vs 0.8%), communications (6.8% vs 6.7%), and recreation (2.2% vs 2.1%). Core inflation slipped to 1.6% from January's 2.0%, the lowest since March 2022, below the central bank’s 2% target for the first time since March 2022. Monthly, the CPI fell 0.2%, matching January's reading and extending declines for the third month.

Japan’s annual inflation eased to 1.5% in January 2026 from 2.1% in the prior month, the lowest since March 2022. Food inflation fell to a 15-month low (3.9% vs 5.1% in December), driven by the slowest rise in rice prices in 18 months. Price growth also eased for transport (0.6% vs 1.9%), healthcare (0.4% vs 0.7%), household items (0.8% vs 1.6%), recreation (2.1% vs 2.3%), and miscellaneous goods (0.6% vs 0.8%). Energy costs stayed negative, with electricity (-1.7% vs -2.3%) and gas (-2.0% vs -2.1%) falling for the second straight month, reflecting subsidy effects. At the same time, education costs declined further (-5.6% vs -5.6%). In contrast, inflation held steady for housing (at 1.0%) while accelerating for clothing (2.4% vs 2.0%) and communications (6.7% vs 6.2% ). Core inflation slipped to 2.0% from 2.4%, the lowest since January 2024, within the central bank’s 2% target. Monthly, CPI fell 0.2%, following a 0.1% drop in December.

Japan’s annual inflation eased to 2.1% in December 2025 from 2.9% in the prior month, the lowest since March 2022. Food inflation fell to a 13-month low (5.1% vs 6.1%), driven by the slowest rise in rice prices in 16 months. Price growth also eased across clothing (2.0% vs 2.3%), transport (1.9% vs 3.3%), healthcare (0.7% vs 0.8%), household items (1.6% vs 1.8%), and communications (6.2% vs 6.9%). Energy costs turned negative, with electricity (-2.3% vs 4.9%) and gas (-2.1% vs 0.7%) falling for the first time in four months, reflecting subsidy effects. Education costs declined further (-5.6% vs -5.6%). In contrast, recreation inflation held steady (at 2.3%), while housing (1.0% vs 0.9%) and miscellaneous goods (0.8% vs 0.6%) edged higher. Core inflation slipped to 2.4% from 3.0%, the lowest since October 2024, though still above the central bank’s 2% target for the 45th straight month. Monthly, CPI fell 0.1%, reversing November’s 0.3% gain and marking the first drop in nine months.