In February 2025, Japan's annual inflation rate decreased to 3.7%, down from a two-year high of 4.0% observed in January. The core inflation rate also saw a decline, settling at 3.0% compared to 3.2% in January, which had been a 19-month peak and was slightly higher than the anticipated 2.9%. On a monthly basis, the Consumer Price Index (CPI) fell by 0.1%, marking the first decline since September, a shift from the 0.5% increase recorded in January.