Inflation in Japan
Japan - Inflation (end of period)
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.
FocusEconomics panelists project consumer prices to rise 2.0% in 2022, which is unchanged from last month’s forecast, and 1.3% in 2023.
Japan - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||0.1||0.3||1.1||0.3||0.8|
5 years of economic forecasts for more than 30 economic indicators.
Japan Inflation (eop) Chart
Source: Statistics Bureau of Japan and FocusEconomics calculations.
|Bond Yield||-0.02||-4.41 %||Dec 30|
|Exchange Rate||108.7||-0.35 %||Jan 01|
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September 30, 2022
Consumer confidence fell to 30.8 in September from August's 32.5.
September 22, 2022
At its meeting ending on 22 September, the Bank of Japan (BoJ) kept its policy rate unchanged at minus 0.10% and left its 10-year government bond yield target at 0.00%, as had been widely expected by the market.
September 20, 2022
Inflation came in at 3.0% in August, which was up from July’s 2.6%.
September 15, 2022
Yen-denominated merchandise exports shot up 22.1% in annual terms in August (July: +19.0% year on year).
September 14, 2022
Industrial output grew 0.8% in month-on-month seasonally-adjusted terms in July, which was a deterioration from June's 9.2% increase.