2026.08.2505:00:00UTC+00Japan’s Core Inflation Cools to 2.3% YoY, Easing from 2.7%

Japan’s core Consumer Price Index (CPI) slowed to 2.3% year-over-year, down from 2.7% previously, according to data updated on 25 August 2026. The figure reflects the change in prices for the latest reported month compared with the same month a year earlier, while the prior reading represents the previous month’s annual comparison.

The moderation in core inflation suggests some easing of price pressures in Japan, where policymakers have been closely watching whether inflation can be sustained near or above target levels after decades of deflationary tendencies. The decline from 2.7% to 2.3% may influence expectations around the Bank of Japan’s future policy stance, as markets assess whether the slowdown signals a temporary dip or the start of a more durable disinflationary trend.