Core inflation in Japan reaches its highest level in 41 years

Japan’s core CPI jumped 3.1% last year, hitting its highest level since 1982.

According to data from the Ministry of Internal Affairs and Communications issued on Friday, the consumer price index, which excludes fresh food items, rose 2.3 percent on an annual basis in December, compared to 2.5 percent, and these levels exceed the Bank of Japan’s target of 2 percent for the 21st month in a row.

Food prices also recorded the largest increase in 48 years after rising 8.2% in 2023, while average real and inflation-adjusted wages declined on an annual basis for the 20th month in a row.

The latest inflation data comes amid Japanese government demands for companies to increase wages ahead of annual spring negotiations between employees and labor unions.