Japan's Inflation Remains Steady Amid Slowing Core Prices

Japan's annual inflation rate held steady at 1.9% in August, mirroring July's figure and remaining its highest level since December 2025.

The core consumer price index (CPI), which excludes fresh food but includes energy, rose 1.7% year-over-year in August, a slight deceleration from July's six-month high of 1.8%. This marks the eighth consecutive month that core CPI has remained below the Bank of Japan's 2% target.

The easing of food inflation is also noteworthy, with prices rising 3.1% year-over-year in August compared to 3.5% in July, marking the softest annual gain for the category since July 2024.