Japan Inflation Rate Hits 2.6%

The annual headline inflation rate in Japan rose to 2.6 percent in July 2022 from 2.4 percent in June, the fastest pace since April 2014, as per official data by the Internal Affairs Ministry.

Photo Insert: The figure is above the Bank of Japan's 2 percent target.

The figure is above the Bank of Japan's 2 percent target amid the Russia-Ukraine war and a weak yen, yet the Bank is likely to maintain its ultra-low monetary policy, according to an Anadolu wire dispatch.

The main drivers of rising prices came from food, fuel, light, and water charges, the ministry reported. Consumer prices, except for fresh food, went up 2.4 percent in July from a year ago, with energy costs making up for around half the gains, it said.

Meanwhile, core consumer prices were at 2.4 percent year-on-year in July, the most since December 2014, after a 2.2 percent rise in June. On a monthly basis, consumer prices went up 0.5 percent, the highest since January 2021, the data showed.

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