21.08.202523:36:26UTC+00Japan Inflation Hits 8-Month Low

Japan experienced a slight decrease in its annual inflation rate, which fell to 3.1% in July 2025 from 3.3% in June, marking its lowest level since the previous November. Notably, electricity prices declined for the first time since April 2024, reducing by 0.7% as compared to a 5.5% increase previously. In contrast, gas prices remained stable, after having risen by 2.7% in the past month. Additionally, education costs continued their downward trend, falling by 5.6%. A deceleration in price growth was observed in categories such as household items, which saw a 2.5% increase compared to 2.7% previously, and recreation, up by 2.6% against the prior 2.8%. Inflation rates for housing, healthcare, and miscellaneous goods remained unchanged at 1.0%, 1.5%, and 1.2%, respectively. However, inflation intensified in the sectors of clothing, transportation, and communications, with rates climbing to 2.8%, 2.6%, and 6.4%, respectively, from the previous figures of 2.6%, 2.4%, and 5.9%. Food prices surged by 7.6%, the highest rate since February, accelerating from 7.2% in June, primarily due to a dramatic 90.7% year-over-year increase in rice prices, despite efforts from Tokyo to control staple food costs. Core inflation mirrored the overall rate at 3.1%, representing a five-month low following June's 3.3%. On a month-to-month basis, the Consumer Price Index (CPI) rose by 0.1%, maintaining the rate observed in June.