2025.09.1823:36:12UTC+00Japan Inflation Hits 10-Month Low

Japan's year-over-year inflation rate decreased to 2.7% in August 2025, down from 3.1% in July, marking its lowest level since October 2024. Electricity prices dropped significantly by 7.0%, compared to a 0.7% decline in July, while gas prices also experienced a decrease after remaining stable the previous month. In the food sector, prices increased by 7.2%, easing from July's five-month peak of 7.6%. This was influenced by the smallest rise in rice prices in eight months, as Tokyo continues its efforts to manage staple food costs. Core inflation remained at 2.7%, aligning with market expectations and hitting a nine-month low. On a monthly basis, the Consumer Price Index (CPI) inched up by 0.1%, maintaining stability for the third consecutive month.