Japan's March Core Inflation Rises 1.8% Year-on-Year; Subsidies Lead to Drop in Energy Prices
Japan's core inflation rate accelerated to 1.8% in March, primarily driven by rising food prices. While government subsidies led to a decrease in energy prices, concerns remain about future inflation due to a weaker yen and Middle East tensions.
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- 📰 Published: April 24, 2026 at 12:14
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TOKYO (CNA) – Japan's core inflation rate accelerated to 1.8% in March, driven by rising food prices, government data showed today.
Public dissatisfaction with rising prices led to the resignation of the previous two prime ministers. Prime Minister Sanae Takaichi, who took office in October last year, pledged to make combating inflation a top policy priority.
Excluding volatile fresh food, Japan's consumer prices rose 1.8% year-on-year in March, higher than market expectations of 1.7%; in February, it was 1.6%.
Japan's inflation rate in February had already fallen to its lowest point since 2022, but after the outbreak of the Iran war, the Bank of Japan warned last month that due to the conflict in the Middle East, "recent crude oil prices have risen," and inflation in Japan is expected to rise further.
However, after the government launched emergency subsidy measures, energy prices in March fell compared to the same period last year, with gasoline prices falling by 5.4%.
Food prices excluding fresh food increased by 5.2% year-on-year.
Bloomberg economist Taro Kimura said: "The weak yen also pushed up prices of goods including household items, reflecting rising import costs."
Japan relies on the Middle East for about 95% of its oil imports. (Compiled by Ji Jinling) 1150424
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Public dissatisfaction with rising prices led to the resignation of the previous two prime ministers. Prime Minister Sanae Takaichi, who took office in October last year, pledged to make combating inflation a top policy priority.
Excluding volatile fresh food, Japan's consumer prices rose 1.8% year-on-year in March, higher than market expectations of 1.7%; in February, it was 1.6%.
Japan's inflation rate in February had already fallen to its lowest point since 2022, but after the outbreak of the Iran war, the Bank of Japan warned last month that due to the conflict in the Middle East, "recent crude oil prices have risen," and inflation in Japan is expected to rise further.
However, after the government launched emergency subsidy measures, energy prices in March fell compared to the same period last year, with gasoline prices falling by 5.4%.
Food prices excluding fresh food increased by 5.2% year-on-year.
Bloomberg economist Taro Kimura said: "The weak yen also pushed up prices of goods including household items, reflecting rising import costs."
Japan relies on the Middle East for about 95% of its oil imports. (Compiled by Ji Jinling) 1150424
Choose to stand with facts, every sponsorship is a force to protect press freedom.
Download the Central News Agency “First-hand News” APP to grasp the latest news in real time.
The text, pictures, and audio-visual content of this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.