In January, Japan's consumer price index rose by 2.0% compared to the previous year, reaching 112.0 when excluding volatile fresh foods. The increase was moderated compared to the 2.4% rise in December due to the abolition of the temporary gasoline tax and a slowdown in food price increases. This figure marks the lowest inflation rate since January 2024, indicating a potential easing of inflationary pressures in the economy. The statistics were released by the Ministry of Internal Affairs and Communications on the 20th.

Specifically, gasoline prices saw a significant decline of 14.6% compared to the same month last year, contributing to a 0.32% decrease in the overall index. The Ministry estimated that the policy-related factors, including the absence of past subsidies, accounted for a 0.13% drop. Additionally, other energy costs such as electricity and city gas also decreased, with an overall energy price drop of 5.2%, further impacting the consumer price index negatively by 0.42%.

On the other hand, food prices, excluding fresh foods, experienced a 6.2% increase, slightly less than the previous month's rise of 6.7%. Notably, rice prices surged by 27.9%, alongside continued price increases for chocolate, coffee beans, and eggs. Conversely, fresh food prices fell by 6.9%, reflecting declining costs for previously rising items such as cabbage and mandarins, showcasing a diverse trend in consumer prices and the ongoing economic recovery dynamics in Japan.