Mount Fuji, Japan

Japan Inflation August 2022

Japan: Inflation comes in at highest level since September 2014 in August

Inflation came in at 3.0% in August, which was up from July’s 2.6%. August’s result represented the highest inflation rate since September 2014. Price pressures accelerated for food; fuel, light and water charges; transport; and culture and recreation.

Meanwhile, core inflation rose to 2.8% in August, from the previous month’s 2.4%.

The trend pointed up slightly, with annual average inflation coming in at 1.4% in August (July: 1.2%).

Finally, consumer prices rose 0.36% in August over the previous month, below July’s 0.48% rise.

A base effect drove the acceleration in headline inflation in August, as month-on-month inflation slowed. In month-on-month terms, price pressures for fuel and transport weakened thanks to declining crude prices. That said, prices for culture and recreation grew at a faster pace in month-on-month terms, suggesting some degree of demand-pull inflation.

That said, our panelists expect headline inflation to soften in what remains of the year. Real wages have grown 0.6% on average this year, unlikely to lead to a sustained increase of inflation to above 3%. Key factors to watch include commodity prices and the value of the yen.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest