2026.02.1923:40:14UTC+00Japan Inflation Lowest Since 2022

Japan’s annual inflation rate slowed to 1.5% in January 2026 from 2.1% in December, marking the lowest level since March 2022. Food inflation eased to a 15‑month low of 3.9% (down from 5.1%), largely reflecting the weakest increase in rice prices in 18 months. Price gains also moderated in several categories, including transport (0.8% vs 1.9%), healthcare (0.4% vs 0.7%), household goods (0.8% vs 1.6%), recreation (2.1% vs 2.3%), and miscellaneous items (0.6% vs 0.8%).

Energy prices remained in negative territory, with electricity (-1.7% vs -2.3%) and gas (-2.0% vs -2.1%) both declining for a second consecutive month, reflecting the impact of government subsidies. Education costs extended their decline (-5.6% vs -5.6%).

By contrast, housing inflation was unchanged at 1.0%, while price growth picked up for clothing (2.4% vs 2.0%) and communications (6.7% vs 6.2%). Core inflation fell to 2.0% from 2.4%, its lowest level since May 2022 and in line with the Bank of Japan’s 2% target. On a monthly basis, the consumer price index decreased by 0.2% after a 0.1% drop in December, the sharpest monthly decline since September 2024.