2026.01.2223:30:00UTC+00Japan's CPI Reverses Course, Drops to -0.2% in December

Tokyo, January 22, 2026 — Japan's Consumer Price Index (CPI) for December 2025 has taken an unexpected downward turn, registering at -0.2%, as reported today. This marks a significant shift from the previous month's CPI, which showed a positive adjustment at 0.3% in November 2025. The latest figures indicate a month-over-month decline, highlighting persisting challenges in driving steady economic inflation in Japan.

Looming at the core of this reversal is the continued struggle with deflationary pressures in the Japanese economy, which policymakers have been grappling with for years. The drop in December poses a setback to the Bank of Japan's longstanding efforts to invigorate the domestic economy, which has been hindered by stagnant wage growth and subdued consumer spending.

This change in CPI trajectory may compel Japanese financial authorities to revisit their monetary policies once again. Analysts forecast that strategies might include further economic stimulus measures or revisiting interest rate policies, as the nation endeavors to navigate its way back to a stable path of economic recovery. As such, the latest data will be under keen scrutiny by investors and economists alike, gauging the resilience of Japan's economic fortifications.