November 2022 Consumer Price Index
Core CPI registers highest growth since December of 1981 as growth picks up centering on goods
December 23, 2022
Summary
◆Japan’s November 2022 core CPI (excluding fresh foods) was at +3.7% y/y, recording its highest growth rate since December 1981. As for goods, growth rates grew for non-durable goods due to the influence of price hikes on food items, while at the same time price hikes spread to a wide range of other components as well.
◆Japan’s core CPI is expected to continue in a similar vein, while at the same time reflecting strong influence from the government’s comprehensive stimulus package, including the Fuel Oil Price Fluctuation Mitigation Program. On a quarterly basis, the growth rate will peak in the Oct-Dec period of 2022 and then decline sharply in the Jan-Mar through Jul-Sep periods of 2023 due to the effects of the program. The growth rate will accelerate again from the Oct-Dec period onward when the effects of the measures have worn off. The underlying tone of prices is expected to continue to rise moderately against the backdrop of an improvement in the supply-demand gap.
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