Japan’s inflation slows for the first time in four months

Japan's consumer price index excluding fresh food rose 1.7% in August from a year earlier, easing from a 1.8% pace in July, indicating that government subsidies have had a fairly significant impact in slowing inflation. | REUTERS

Sep 18, 2026

Japan’s inflation slowed for the first time in four months, largely reflecting the effect of government subsidies, in data released hours before the Bank of Japan is expected to announce an interest rate hike.

The consumer price index (CPI) excluding fresh food rose 1.7% in August from a year earlier, easing from a 1.8% pace in July, the Ministry of Internal Affairs and Communications said Friday. Economists had expected the rate to remain unchanged.

While the data showed a slight slowing of inflation, the reading isn’t likely to change the calculus on Friday’s BOJ rate decision, especially given widespread expectations that the price trend will pick up in the coming months.

In a time of both misinformation and too much information,
quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.