Mount Fuji, Japan

Japan Inflation July 2023

Japan: Inflation remains steady in July

Inflation held steady at June’s 3.3% in July, exceeding market expectations. Food plus culture and recreation prices rose at a faster pace than in the prior month, while fuel, light and water charges fell at a speedier rate.

Annual average inflation rose to 3.5% in July (June: 3.4%). Meanwhile, core inflation fell to 3.1% in July, from June’s 3.2% and matching market expectations.

Lastly, consumer prices rose 0.45% from the previous month in July, accelerating from the 0.07% rise recorded in June.

Looking ahead, our panelists expect inflation to cool in the coming quarters, dipping below the Bank of Japan’s 2.0% target in Q2 2024. Domestic demand remains weak, with GDP figures released on 15 August showing that private spending contracted in Q2; the effect of rising wages was canceled out by elevated inflation. A key factor to watch ahead is whether the government extends subsidies for electricity and gas, which are due to expire at the end of September. The government will reportedly make a decision in the coming weeks.

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