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Inflation in Japan slowed to 2.6% in December


January, 19 2024
watermark Economic news

According to the Ministry of Internal Affairs and Communications of Japan, consumer prices rose by 2.6% in December compared to the previous year, which was the lowest level since July 2022. In November, the figure was 2.8%, so inflation slowed down.


Food prices rose by 6.7%, which also means a slowdown in price growth compared to the previous period (7.3%).


Fuel and electricity fell in price by 13.2% – quite significantly compared to the previous month (11.4%).


Transport services rose in price by 2.9%, clothing by 3%, which indicates a moderate increase in prices in these areas.


Prices excluding fresh food (a key indicator for the central bank) increased by 2.3%, which turned out to be lower than in November (2.5%) and became the lowest value in a year and a half.


Core inflation (CPI Core Index) has remained above the Bank of Japan's 2% target for 21 consecutive months. The indicator in December was 3.7% year-on-year, which is slightly lower than the level of the previous month (3.8%).


On a monthly basis, consumer prices in Japan rose by 0.1% compared to November, after the indicator remained unchanged in the previous month.


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