Japan Inflation Lowest Since 2022

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 (0.8% 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.

Japan’s annual inflation rate edged down to 2.9% in November 2025 from October's 3-month high of 3.0%, as food inflation hit its lowest in a year (6.1% vs 6.4% in October) amid the slowest rise in 15 months for rice prices. Price growth also slowed for clothing (2.3% vs 2.5%), transport (3.3% vs 3.6%), recreation (2.3% vs 2.6%), communications (6.8% vs 7.5%), and miscellaneous goods (0.6% vs 0.7%), while education costs fell further (-5.6% vs -5.6%). In contrast, inflation was unchanged for housing (at 0.9%), household items (at 1.8%), and healthcare (at 0.8%). Meanwhile, utility prices rose further, with electricity inflation accelerating (4.9% vs 3.5%), while gas prices maintained their increase (0.7% vs 0.7%). Meanwhile, core inflation stood at 3.0%, keeping the same pace as in October and remaining above the Bank of Japan’s 2% target for the 44th straight month. Monthly, the CPI rose 0.4%, matching October's reading and staying at its highest in eight months.