Commentary Directory

Japan CPI: August 2023

Jacob Hess
September 21, 2023

Japan CPI

9/21/2023 (August 2023)

+0.3% MoM (+3.2% YoY)


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Core CPI +0.3% MoM (+2.7% YoY)
Household Goods -0.8% MoM (+7.1% YoY)
Recreation +1.8% MoM (+5.0% YoY)

The Bank of Japan’s reading of core inflation, CPI (ex-fresh food), was up marginally by 0.2% MoM, and the annual rate remained the same at 3.1% YoY. This is down from a peak of 4.2% YoY in January and the same rate reported in February, March, and July of this year. Similarly, core CPI (ex-food, energy) increased by just 0.3% MoM and 2.7% YoY. This annual pace is still at its peak, however, as the depressing effects of energy prices are not evident. There has been some progress on inflation in 2023, but so far it seems that progress has only been made through falling energy prices which are now back on the rise.