Japan Inflation Rate

The annual inflation rate in Japan rose to 4.0 % in December 2022, the highest since January 1991 amid a rise in prices of imported raw commodities and yen weakness. Upward price pressures came from all components, namely food (7.0% vs 6.9% in November); housing (1.2% vs 1.2%); fuel, light, and water charges (15.2% vs 14.1%), mainly electricity (21.3% vs 20.1%) and gas (23.3% vs 21.0%); transport & communication (2.1% vs 1.6%); medical care (0.4% vs 0.3%), furniture & household utensils (7.5% vs 7.3%); clothes (2.9% vs 2.7%), education (0.7% vs 0.7%), and miscellaneous (1.1% vs 0.9%). Core consumer prices also increased by 4.0% year-on-year, the most since December 1981, matching market forecasts but above the Bank of Japan's 2% target for a ninth straight month. On a monthly basis, consumer prices went up 0.3% in December, the least in four months, after an upwardly revised 0.4% gain in November.