According to the Ministry of Internal Affairs and Communications of Japan, annual inflation reached a record high of 3.7% in November, a level unseen since 1981. In October this indicator totaled only 3.6%.
In December, analysts were unpleasantly surprised when inflation spiked to a 4-decade high of 3.7%. When calculating the inflation rate, the Ministry took into account energy prices, excluding perishable food prices because of their sharp fluctuations. Overall, the core consumer price index (CPI) approached 3.8%. Notably, consumer prices have been rising for the eighth month in a row.
Inflation was mainly fueled by soaring food and energy prices. Additionally, electronic devices also became significantly more expensive. Analysts at Teikoku revealed that prices of around 6,700 items advanced in October, an all-time high for one month. Analysts also expect 7,152 food products to jump in price in the first four months of 2023. If so, the figure will be twice high as the reading of 2021.
