In a surprising turn of events, core inflation in Japan's capital, Tokyo, has taken a downturn as it slipped into negative territory in December 2025. The Consumer Price Index (CPI) excluding food and energy declined to -0.1%, down from 0.1% recorded in November 2025, according to the latest statistics updated on December 25, 2025.
The fall marks a month-over-month reversal from the previous increment observed in November, signaling potential concerns about deflationary pressures in the metropolitan area. This downward movement highlights the ongoing challenges in the Japanese economy's continued efforts to invigorate inflation amid various global and domestic economic headwinds.
This decline in core inflation in Tokyo, a crucial economic hub, could play a significant role in shaping monetary policies and economic strategies going forward. Policymakers and analysts will likely keep a close watch on these figures as they assess the implications for Japan's broader economic outlook and potential policy adjustments.
