Tokyo Core Consumer Prices Rise 3.6%... Highest in 40 Years

Energy and Food Prices Drive Inflation
Largest Increase Since 1982

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Japan's core Consumer Price Index (CPI) for November, excluding fresh food in Tokyo, reached the highest level in 40 years due to the surge in raw material and energy prices.

According to the Ministry of Internal Affairs and Communications of Japan on the 25th, the core CPI for the 23 wards of Tokyo in November rose 3.6% compared to the same month last year. Excluding the price increase caused by the introduction of the consumption tax in 1989, this is the highest rate of increase in 40 years and 7 months since April 1982 (4.2%).

Energy and food prices fueled the inflation. Energy prices rose 24.4%, marking a double-digit increase for 13 consecutive months. Electricity bills increased by 26.0%, and city gas charges rose by 33.0%. Gasoline prices decreased by 0.8% due to the effect of government price suppression subsidies, reducing the overall inflation rate.

Food prices excluding fresh food rose 6.7% compared to the same period last year. NHK noted that since the 23 wards of Tokyo serve as a leading indicator of nationwide consumer prices, attention is focused on whether the nationwide CPI will rise in November.

Japanese media forecast that significant wage increases will follow as prices continue to rise at record levels daily. Nihon Keizai stated, "In 1982, when the inflation rate was 4.2%, the wage increase rate was 7.01%," adding, "Labor unions have set a target of a 5% wage increase in next spring's wage negotiations, but even if this demand is realized, it will not be enough for workers to feel prosperity."

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