Japan’s CPI fell -0.1% MoM in January 2026, well below the 0.5% MoM increase in January 2025, and the annual rate slowed significantly from 2.1% YoY in December to 1.5% YoY in January (the lowest since March 2022).

• CPI (ex fresh food) fell -0.2% MoM for the second straight month (vs +0.2% MoM a year ago), causing the annual rate to decelerate from 2.4% YoY to 2.0% YoY (vs 2.0% YoY expected), the lowest since January 2024.
• Core inflation fell from 1.5% YoY in December to 1.3% YoY in January, the lowest since September 2025.
• Food inflation eased to 3.9% YoY in January, down from 5.1% YoY in December, the lowest since November 2024 as fresh food prices were down -6.9% YoY (sharpest decline since August 2021).
• The decline in energy prices over the year intensified, down -5.2% YoY in January vs -3.1% YoY in December.