Japan Inflation Hits 8-Month Low

2025-08-21 23:36 By Farida Husna 1 min. read

Japan's annual inflation rate eased to 3.1% in July 2025 from 3.3% in the previous month, marking the lowest reading since November 2024.

Electricity prices fell for the first time since April 2024 (-0.7% vs 5.5%), while gas prices were unchanged after a 2.7% increase previously.

Education costs also continued to decline (-5.6% vs -5.6%).

Meanwhile, price growth slowed for household items (2.5% vs 2.7%) and recreation (2.6% vs 2.8%).

Inflation held steady for housing (at 1.0%), healthcare (at 1.5%), and miscellaneous goods (at 1.2%), but quickened for clothing (2.8% vs 2.6%), transport (2.6% vs 2.4%), and communications (6.4% vs 5.9%).

On the food side, prices jumped 7.6%, the most since February, accelerating from 7.2% in June, driven by rice, which soared 90.7% year-on-year despite Tokyo’s efforts to curb staple food costs.

Core inflation also came in at 3.1%, matching the headline rate and reaching a 5-month low after June’s 3.3%.

Monthly, the CPI edged up 0.1%, the same as in June.



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