Japan’s CPI fell -0.6% MoM in February 2026, below the -0.4% MoM drop in February 2025, and the annual rate fell to 1.3% YoY (the lowest since March 2022).

• CPI (ex fresh food) fell -0.5% MoM, the largest monthly decline since February 2023, causing the annual rate to drop -0.4 ppts to 1.6% YoY (vs 1.7% YoY expected), the lowest since March 2022 as well.
• Core inflation was +0.1% MoM and +1.4% YoY in February, ticking up from 1.3% YoY in January.
• Food prices saw their typical seasonal February decline, dropping -0.4% MoM with fresh food prices down -2.8% MoM.
• The energy subsegment crashed -7.5% MoM and -9.1% YoY in February, but that deflation will reverse sharply in March due to the Middle East conflict.