Inflation in Japan
A recent economic issue for Japan, with inflation hitting a 40-year high. This pressure forced the Bank of Japan to attempt to raise interest rates, which in turn triggered the Yen carry trade crisis.
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8/26/2025, 6:14:06 AM
entitydetail.last_updated
8/26/2025, 6:16:42 AM
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8/26/2025, 6:16:42 AM
Summary
Inflation in Japan is a critical economic concern, currently standing at 3.10% as of July 2025. This situation is significantly influenced by the Bank of Japan's attempts to raise interest rates, a move that triggered a substantial unwinding of the Yen Carry Trade and highlighted the fragility of the global financial system due to high leverage and sophisticated trading algorithms. Japan's economic landscape is further complicated by its high debt-to-GDP ratio and an aging population. Recent inflation figures show fluctuations, with a peak of 4.0% in January 2025, driven by rising food, electricity, and gas prices, though government energy subsidies have provided some moderation. Historically, Japan has experienced an all-time high inflation rate of 24.90% in February 1974 and a record low of -2.50% in October 2009, with an average rate of 2.85% from 1958 to 2025. This domestic economic challenge is viewed within a broader global context, including growing odds of a US recession and expectations for Federal Reserve rate cuts.
Referenced in 1 Document
Research Data
Extracted Attributes
Economic Context
High Debt-to-GDP Ratio, Aging Population
Mitigating Factors
Government energy subsidies
Key Contributing Factors
Food prices (especially rice), electricity prices, gas costs
Inflation Rate (May 2025)
3.50%
Inflation Rate (April 2025)
3.60%
Historical Low Inflation Rate
-2.50% (October 2009)
Inflation Rate (January 2025)
4.0%
Historical High Inflation Rate
24.90% (February 1974)
Inflation Rate (December 2024)
3.6%
Inflation Rate (February 2025)
3.70%
Average Inflation Rate (1958-2025)
2.85%
Current Inflation Rate (July 2025)
3.10%
Timeline
- Japan's annual inflation rate reached an all-time high of 24.90%. (Source: web_search_results)
1974-02-01
- Japan's annual inflation rate reached a record low of -2.50%. (Source: web_search_results)
2009-10-01
- Inflation rate reached a high point, with subsequent rates in late 2024 and early 2025 being compared to this period. (Source: web_search_results)
2023-01-01
- The annual inflation rate in Japan jumped to 3.6% from 2.9% in the prior month, marking the highest reading since January 2023. Food, electricity, and gas prices contributed significantly. (Source: web_search_results)
2024-12-01
- The annual inflation rate climbed to 4.0%, marking the highest reading since January 2023. Food prices rose at the steepest pace in 15 months. (Source: web_search_results)
2025-01-01
- The annual inflation rate fell to 3.7% from a 2-year high of 4.0% in January, primarily due to a sharp slowdown in electricity and gas prices following government's reinstatement of energy subsidies. (Source: web_search_results)
2025-02-01
- Japan's annual inflation rate stood at 3.6%, unchanged from March. Core consumer prices increased 3.50% over the same month in the previous year. (Source: web_search_results)
2025-04-01
- Japan's annual inflation rate decreased to 3.5% from 3.6% in the previous two months, marking the lowest level since November. Price growth eased for clothing, household items, and healthcare. (Source: web_search_results)
2025-05-01
- Japan's inflation rate is reported at 3.10%. (Source: web_search_results)
2025-07-01
Web Search Results
- Japan Inflation Hits 8-Month Low
Japan Inflation Rate Highest in Near 2 Years -------------------------------------------- The annual inflation rate in Japan jumped to 3.6% in December 2024 from 2.9% in the prior month, marking the highest reading since January 2023. Food prices rose at the steepest pace in a year (6.4% vs 4.8% in November), with fresh vegetables and fresh food contributing the most to the upturn. Further, electricity prices (18.7% vs 9.9%) and gas cost (7.8% vs 5.6%) increased at the fastest rate in four [...] Japan Inflation Holds Steady at 3.6% ------------------------------------ Japan's annual inflation rate stood at 3.6% in April 2025, unchanged from March while remaining at its lowest print since December. Food prices rose the least in four months (6.5% vs 7.4% in March) even as rice costs jumped 94.8% yoy, hitting a new record for the 7th straight month due to poor harvests and rising demand from record tourist numbers. Price growth also eased for clothing (2.7% vs 3.0%) and household items [...] Japan Inflation Rate Eases from 2-Year High ------------------------------------------- The annual inflation rate in Japan fell to 3.7% in February 2025 from a 2-year high of 4.0% in the prior month, amid a sharp slowdown in prices of electricity (9.0% vs 18.0% in January ) and gas (3.4% vs 6.8%) following government's reinstatement of energy subsidies. Also, food prices rose slightly slower after hitting a 15-month high in January (7.6% vs 7.8%). Further, inflation moderated for healthcare
- Japan Inflation Rate
Inflation Rate in Japan decreased to 3.50 percent in May from 3.60 percent in April of 2025. Inflation Rate in Japan averaged 2.85 percent from 1958 until 2025, reaching an all time high of 24.90 percent in February of 1974 and a record low of -2.50 percent in October of 2009. This page provides the latest reported value for - Japan Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Japan [...] Japan's annual inflation rate edged down to 3.5% in May 2025 from 3.6% in the previous two months, marking the lowest level since November. Price growth eased for clothing (2.6% vs 2.7% in April), household items (3.6% vs 4.1%), and healthcare (2.0% vs 2.2%), while education costs fell further (-5.6%). In contrast, inflation held steady for transport (2.7%) and miscellaneous items (1.3%), but accelerated for housing (1.1% vs 1.0%), recreation (3.0% vs 2.7%), and communications (1.9% vs 1.1%). [...] ### Inflation Rate in Japan decreased to 3.50 percent in May from 3.60 percent in April of 2025. Inflation Rate in Japan is expected to be 3.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan Inflation Rate is projected to trend around 2.10 percent in 2026 and 2.20 percent in 2027, according to our econometric models. % 1Y3Y5Y10YMAX Export API OK Loading...
- Japan Inflation Rate YoY (ECONOMICS:JPIRYY)
$JPIRYY -Japan's Inflation Rate (February/2025)ECONOMICS:JPIRYY February/2025 source: Ministry of Internal Affairs & Communications - The annual inflation rate in Japan fell to 3.7% in February 2025 from a 2-year high of 4.0% in the prior month, amid a sharp slowdown in prices of electricity (9.0% vs 18.0% in January )and gas (3.4% vs 6.8%) Image 37: ECONOMICS:JPIRYY Image 38 by Mr_J__fx Mar 24 2 [...] $JPIRYY -Japan's Inflation Rate (CPI)ECONOMICS:JPIRYY 4% (January/2025) source: Ministry of Internal Affairs & Communications - The annual inflation rate in Japan climbed to 4.0% in January 2025 from 3.6% in the prior month, marking the highest reading since January 2023. Food prices rose at the steepest pace in 15 months (7.8% vs 6 Image 39: ECONOMICS:JPIRYY Image 40 by Mr_J__fx Feb 21 2 [...] $JPIRYY -Japan's Inflation Rate (October/2024)ECONOMICS:JPIRYY 2.3% October/2024 source: Ministry of Internal Affairs & Communications -The annual inflation rate in Japan fell to 2.3% in October 2024 from 2.5% in the prior month, marking the lowest reading since January. Electricity prices saw the smallest increase in six months (4.0% vs 15 Image 45: ECONOMICS:JPIRYY Image 46 by Mr_J__fx Nov 22, 2024 2
- Japan Inflation Rate - Real-Time & Historical Trends
Select a name for the new portfolio in iRebal. Cancel Push Overview Interactive Chart More ### Level Chart View Full Chart) 1m) 3m) 6m) YTD) 1y) 3y) 5y) 10y) Max) Loading... Select area to zoom | | | --- | | Japan Inflation Rate is at 3.10%, compared to 3.30% last month and 2.80% last year. This is higher than the long term average of 2.44%. | | | | | --- | --- | | Report | Japan Consumer Price Index | | Category | Consumer Prices | [...] RBC Previews This Week's Inflation Data in Canada MT Newswires 08/18 09:09 ### Basic Info | | | --- | | Japan Inflation Rate is at 3.10%, compared to 3.30% last month and 2.80% last year. This is higher than the long term average of 2.44%. | | | | | --- | --- | | Report | Japan Consumer Price Index | | Category | Consumer Prices | | | | | --- | --- | | Region | Japan | | Source | Japan Statistics Bureau | ### Stats [...] | | | | --- | --- | | Region | Japan | | Source | Japan Statistics Bureau | | | | | --- | --- | | Last Value | 3.10% | | Latest Period | Jul 2025 | | Last Updated | Aug 21 2025, 21:01 EDT | | Next Release | Sep 18 2025, 21:00 EDT | | Long Term Average | 2.44% | | Average Growth Rate | 0.78% |
- Japan Core Inflation Rate
### Core consumer prices in Japan increased 3.50 percent in April of 2025 over the same month in the previous year. Core Inflation Rate in Japan is expected to be 2.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan Core Inflation Rate is projected to trend around 1.80 percent in 2026 and 2.00 percent in 2027, according to our econometric models. [...] ## Core consumer prices in Japan increased 3.50 percent in April of 2025 over the same month in the previous year. Core Inflation Rate in Japan averaged 2.40 percent from 1971 until 2025, reaching an all time high of 24.70 percent in October of 1974 and a record low of -2.40 percent in August of 2009. This page provides - Japan Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Japan Core Inflation Rate - data, historical chart, [...] | Inflation Rate MoM | 0.10 | 0.30 | percent | Apr 2025 | | Tokyo Core CPI YoY | 3.60 | 3.40 | percent | May 2025 | | Tokyo CPI YoY | 3.40 | 3.40 | percent | May 2025 | | Tokyo CPI Ex Food and Energy YoY | 2.10 | 2.00 | percent | May 2025 |