Inflation in Japan jumps to highest level in decades
Japan’s consumer inflation rate hit a 41-year high of 4% in December 2022 as prices for everything from hamburgers to fuel rose.
Japan’s core consumer price index, excluding fresh produce, rose 2.3% year-on-year in 2022, the highest level in 31 years, authorities said.
The Bank of Japan’s inflation target is around 2% while prices have risen more than usual and some companies such as Fast Retailing, which runs clothing chain Uniqlo, have announced wage increases, but revenues in Japan have generally remained flat. previous level.
This rate in Japan is still relatively low compared to some other countries, including the US. Japan, the world’s third-largest economy, has avoided deflation or chronically low prices for decades.
The Ministry of the Interior and Communications said that the last significant increase in consumer prices was in December 1981.
The US Federal Reserve and several other central banks raised interest rates to tame inflation, but the Bank of Japan kept interest rates at a long-term low of -0.1%.
The sharp weakening of the Japanese yen against the US dollar and other currencies increased pressure on the Bank of Japan, and speculation that it may soon change course and start raising interest rates has intensified.