Japan’s headline inflation rate slowed sharply to 2.1%, its lowest level since March 2022, down from 2.9% in November, as easing price pressures collide with political focus on living costs and a looming central bank decision.
This was the 45th straight month that the inflation figure has been above the Bank of Japan’s 2% target.
Core inflation, which strips out prices of fresh food, stood at 2.4%, in line with analysts’ estimates and its lowest level since October 2024. That was sharply lower than November’s 3%.
The so-called “core-core” inflation rate — which strips out prices for fresh food and energy — eased to 2.9% from 3% a month earlier.
Japan’s full-year inflation stood at 3.2%, according to government data. Inflation hit a two-year high in January 2025, before tapering down over the course of the year.
