The indicator, which excludes fresh food prices due to their high volatility, shows a slowdown compared to a 3.3% increase in June, 3.7% in May, and 3.5% in April, according to data published by Japan’s Ministry of Internal Affairs and Communications’ Statistics Bureau, yet it remains above the Bank of Japan’s stable target of 2%.
Energy prices fell by 0.2% in that month, while electricity prices decreased by 0.7%, one of the factors contributing significantly to the slowdown of the indicator in July 2025. Meanwhile, gas prices remained unchanged from the previous month.
The price of food, excluding fresh products, rose by 8.3%, primarily due to a 27.4% increase in cereal prices, reflecting the impact of the “rice crisis” the country is experiencing due to speculation.
Conversely, fresh food prices increased by 3.3%, and vegetable prices rose by 3.7%.
Regarding core inflation, which excludes fresh food and energy, it advanced by 3.4% in July, the same level as the previous month, also above the Japanese central bank’s target.
