Azernews.Az

by Alimat Aliyeva

Japan’s core consumer prices—which exclude fresh food—rose by 3.1 percent on average in 2025, marking the fourth consecutive annual increase, Azernews reports, citing foreign media.

For the full year, rice prices surged 67.5 percent, the largest jump since 1971 when comparable records began, according to the Ministry of Internal Affairs and Communications. Analysts warn that such extreme spikes could have social and economic ripple effects, as rice remains a staple in Japanese households.

In December alone, the nationwide consumer price index (excluding fresh food) rose 2.4 percent year-on-year, slowing for the first time in four months from 3 percent in November. The deceleration was partly aided by government subsidies for gasoline, which eased energy costs.

Energy prices fell 3.1 percent in December compared with the previous year, reversing November’s 2.5 percent increase, while food prices, excluding fresh items, rose 6.7 percent, slightly lower than the 7 percent gain in November.

The core-core CPI, which strips out both energy and fresh food to better reflect underlying inflation trends, eased slightly to 2.9 percent in December from 3 percent in November, indicating that inflation pressures may be moderating, though still at levels above the Bank of Japan’s 2 percent target.

Interestingly, economists point out that while headline inflation remains high due to spikes in essentials like rice, underlying price pressures across most goods and services show signs of stabilization. Some suggest this could signal a gradual shift in Japan’s long-standing deflationary trend, potentially influencing future monetary policy and household spending patterns.