Japan’s annual inflation holds at 1.9% in August

Japan’s annual consumer inflation remained unchanged at 1.9% in August, staying at its highest level in seven months, official data showed Friday.

The consumer price index stood at 102.2, based on 2025 prices, according to the country’s Statistics Bureau.

Core inflation, which excludes volatile fresh food prices, eased to 1.7% from 1.8% in July, falling short of market expectations of 1.8%.

The reading remained below the Bank of Japan’s 2% inflation target for the eighth consecutive month.

The index excluding both fresh food and energy, closely monitored to assess underlying price pressures, rose 1.9% annually.

Among major components, food prices increased 3.1% year on year in August, slowing from a 3.5% rise in July.

Prices rose 4.9% for furniture and household utensils, 3% for medical care, 2.3% for transportation and communication, and 2.2% for culture and recreation.

Electricity prices fell 2.4% from a year earlier, compared with a 0.1% decline in July, while education costs decreased 3.8%.

On a monthly basis, consumer prices edged up 0.1% in August.