Japan’s CPI fell -0.2% MoM in December 2025, well below the 0.6% MoM increase in December 2024, and the annual rate slowed from 2.9% YoY in November to 2.1% YoY in December (lowest since March 2022).

• CPI (ex fresh food) also fell -0.2% MoM (vs +0.3% MoM a year ago), pushing the annual rate down to 2.4% YoY (vs 2.4% YoY expected) from 3.0% YoY previously.
• Core inflation ticked down -0.1 ppt to 1.5% YoY after falling -0.1% MoM.
• Food inflation eased to 5.1% YoY in December, down from 5.1% YoY in November and the lowest since November 2024. Fresh food flipped from being up 1.5% YoY to down -2.7% YoY (lowest since July 2021).
• Energy inflation also flipped from positive in November (+2.5% YoY) to deflation in December (-3.1% YoY).
• Non-food and energy segments saw little change in their YoY rates as core inflation remained roughly stable from month-to-month.