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The key inflation indicator in Japan in December reached the highest in 41 years


January, 20 2023
watermark Economic news

According to the Ministry of Internal Affairs and Communications of Japan, consumer prices in the country (excluding fresh food) increased by 4% in December compared to the same month of the previous year. Such a sharp increase was the highest since December 1981.


Analysts note that the indicator exceeded the 2% target of the Bank of Japan for the ninth month in a row. In November, inflation increased by 3.7%. The consensus forecast of experts also provided for an acceleration of growth rates to 4%.


Overall, overall inflation in Japan last month was also 4% year-on-year, accelerating from 3.8% in November. Its pace was the highest since January 1991.


In particular, food prices rose by 7% in December, clothing – by 2.9%, fuel, electricity and water supply - by 15.2%, including electricity – by 21.3% and gas – by 23.3%. The cost of transport and telecommunications services increased by 2.1%, educational services – by 0.7%.


On a monthly basis, consumer prices in Japan increased by 0.3% in December compared to the previous month. In November, according to the revised data, the indicator increased by 0.4%, not 0.3%, as previously reported.


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