Japan's Consumer Prices Rise 3.0% in September... Highest in 31 Years (Comprehensive)

Highest Growth Rate Since 1991
Increase Trend Expected to Continue Until Year-End

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Japan's consumer prices have reached their highest level in 31 years due to the depreciation of the yen and rising energy prices.

According to the September Consumer Price Index (excluding fresh food) announced by Japan's Ministry of Internal Affairs and Communications on the 21st, prices rose 3.0% compared to the same month last year. Excluding the price increase caused by the consumption tax hike in April 2014, this is the highest rate of increase in 31 years and 1 month since August 1991. Japan's consumer price inflation rate had been in the 2% range for five consecutive months since April but exceeded 3% in September.

The rise in prices is analyzed to have been driven by the depreciation of the yen amid rising energy and raw material prices due to the Russia-Ukraine war. Among the 522 items surveyed, 385 recorded an increase compared to the same month last year, up from 372 items in the previous month.

Specifically, durable household goods rose 11.3% compared to the same month last year, marking the largest increase since March 1975. Fresh food prices increased by 4.6%. The rise in energy prices, including electricity charges, was 16.9%, similar to the previous month.

The corporate goods price index also rose 9.7% compared to the same month last year, reaching the highest level since statistics began in 1960.

The Asahi Shimbun stated, "While rising crude oil and grain prices have been the main causes of consumer price inflation so far, the depreciation of the yen has had a significant impact in recent months," and forecasted, "Although the inflation rate in September recorded the highest level in 31 years, the record increase is likely to continue until the end of the year."

Meanwhile, the Japanese government plans to establish a large-scale comprehensive economic measure by the end of this month to support households and businesses struggling with rising prices and energy costs.

This content was produced with the assistance of AI translation services.