August 2022 Consumer Price Index

◆Japan’s August 2022 core CPI (excluding fresh foods) was at +2.8% y/y, with the growth rate up by 0.4%pt in comparison to the previous month. All growth rates rose for durable goods, semi-durable goods, non-durable goods, and services. Overall results were boosted significantly by the shift into positive growth on a y/y basis for services backed by the further falling away of the influence of cuts in telephone charges (mobile phone), and the rising growth rate of non-durable goods associated with the high import prices.

◆Japan’s core CPI is expected to continue experiencing upward pressure influenced by high import prices. While government policies, such as the program to mitigate extreme fluctuations in the price of fuel oil, are expected to hinder growth in prices somewhat, the high import prices will continue to spread with a time lag throughout the country in a ripple effect, and core CPI is expected to move in the range of the upper 2% level through the Oct-Dec period of 2022.