Japan Inflation Rate Inches Up to 1.5%

2026-06-18 23:37 By Farida Husna 1 min. read

Japan’s annual inflation rate edged higher to 1.5% in May 2026 from 1.4% in the previous month, as declines in electricity and gas prices moderated amid the expiration of government subsidies.

Price growth also accelerated across several categories, including transport (1.9% vs. 1.5% in April), housing (0.9% vs. 0.8%), clothing (1.7% vs. 1.5%), household goods (2.2% vs. 1.9%), recreation (1.7% vs. 1.3%), and miscellaneous items (0.2% vs. 0.1%).

Simultaneously, healthcare costs were unchanged for a second consecutive month while education prices remained in deflation (-6.1% vs -6.1%).

On the food side, prices rose by 3.5% yoy, matching April's pace and staying at its slowest rate in 18 months as rice costs fell for the first time since November 2022.

Core inflation stood at 1.4%, unchanged from April and in line with market consensus but remained below the central bank’s 2% target for a fourth successive month.

On a monthly basis, consumer prices rose 0.4%, up from 0.1% in April.



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Japan Inflation Rate Inches Up to 1.5%
Japan’s annual inflation rate edged higher to 1.5% in May 2026 from 1.4% in the previous month, as declines in electricity and gas prices moderated amid the expiration of government subsidies. Price growth also accelerated across several categories, including transport (1.9% vs. 1.5% in April), housing (0.9% vs. 0.8%), clothing (1.7% vs. 1.5%), household goods (2.2% vs. 1.9%), recreation (1.7% vs. 1.3%), and miscellaneous items (0.2% vs. 0.1%). Simultaneously, healthcare costs were unchanged for a second consecutive month while education prices remained in deflation (-6.1% vs -6.1%). On the food side, prices rose by 3.5% yoy, matching April's pace and staying at its slowest rate in 18 months as rice costs fell for the first time since November 2022. Core inflation stood at 1.4%, unchanged from April and in line with market consensus but remained below the central bank’s 2% target for a fourth successive month. On a monthly basis, consumer prices rose 0.4%, up from 0.1% in April.
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Japan’s annual inflation rose to 1.5% in March 2026 from February’s near four-year low of 1.3%, with transport costs posting the fastest increase in four months (2.1% vs 0.5% in February), amid the effects of the Middle East tensions. Inflation also accelerated for household items (2.7% vs 1.2%), communications (7.0% vs 6.8%), recreation (2.3% vs 2.2%), and miscellaneous goods (0.7% vs 0.6%). Price growth held steady for clothing (at 2.1%) and housing (at 1.0%), but eased for healthcare (0.2% vs 0.4%). Food inflation slowed to a 17-month low (3.6% vs 4.0%), driven by the softest rise in rice prices in two years. Meanwhile, electricity prices (-8.0% vs -8.0) and gas (-5.2% vs -5.1%) fell further, reflecting subsidy effects. Core inflation accelerated to 1.8% from February's 1.6%, but remained below the central bank’s 2% target for the second month. Monthly, the CPI increased 0.4%, reversing a 0.2% decline in January and February and marking the highest reading since January 2025.
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