Japan Puts 2023 Inflation Rate Higher Than 2.6%

Consumer inflation in Japan will accelerate faster than previously estimated to 2.6% in the fiscal year ending next March, the Cabinet Office said, well above the Bank of Japan's target, Mainichi Shimbun reported.

Photo Insert: Japan's economic outlook for fiscal 2023 has been downgraded by the government amid slowing export growth.

The government had estimated that consumer prices, which include energy and volatile fresh food items, would rise 1.7% this year. For next year, prices are estimated to gain 1.9%.

The economic outlook for fiscal 2023 has been downgraded by the government amid slowing export growth. Japan's real gross domestic product (GDP) is now forecast to grow by 1.3%, instead of the 1.5% projected in January.

The revised forecasts were presented to a meeting of the Council on Economic and Fiscal Policy on Thursday as its members debated a budget framework for the next fiscal year. Aggressive interest rate hikes by major central banks in the United States and Europe are threatening to curb demand for Japanese products.

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