Japan's Inflation Hits 1.7%, Food Prices Drive Growth

The Japanese economy experienced a slight increase in inflation in June 2026, with an annual growth rate of 1.7% in the consumer price index. This is up from 1.5% in May, but still below the peak inflation rates seen at the end of 2022 and the beginning of 2023.

The energy prices in Japan decreased by 0.1% compared to June 2025, while food inflation was up 3.2%. The underlying inflation rate, excluding fresh food and energy, remained steady at 1.7%.

This trend is notable as it contrasts with the experience of Canada, where inflation has been decelerating faster in recent years. Nova Scotia's inflation rates also surpassed Japan's in December 2025, but have since fallen below Japan's target of 2%, which it has remained below since January 2026.