Japan May CPI rises 2.5%... rebounds after 3 months
Impact of Rising Energy Costs Including Electricity Bills
Japan's consumer price inflation rate rebounded after three months. This is attributed to the impact of the Japanese government's surcharge for the promotion of renewable energy, which pushed up electricity rates.
According to the Ministry of Internal Affairs and Communications of Japan on the 21st, Japan's May Consumer Price Index (CPI, excluding fresh food) rose 2.5% compared to the same period last year. This year, Japan's consumer price inflation rates were 2.0% in January, 2.8% in February, 2.6% in March, and 2.2% in April. Inflation, which had been declining since February, rebounded after three months.
The Nihon Keizai Shimbun (Nikkei) pointed out that the Japanese government's increase in electricity surcharges to promote renewable energy expanded the inflation rate. Due to the government's electricity subsidy program, the electricity rate inflation, which had been negative since February 2023, rose 14.7% last month, turning positive for the first time in 16 months.
Sayuri Shirai, professor at Keio University’s Faculty of Policy Management, analyzed, "The inflation rate rose because while food price inflation fell, energy price inflation increased to 7.2%," adding, "This trend of rising energy prices is expected to continue in June." She further emphasized, "Japan's inflation is still mainly cost-push inflation. We need to pay attention to whether inflation driven by domestic demand expansion occurs."
Hot Picks Today
!["Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①](https://cwcontent.asiae.co.kr/asiaresize/93/2026051914165468840_1779167814.png)
"Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①
- "Not Jealous of Winning the Lottery"... Entire Village Stunned as 200 Million Won Jackpot of Wild Ginseng Cluster Discovered at Jirisan
- "I'll Stop by Starbucks Tomorrow": People Power Chungbuk Committee and Geoje Mayoral Candidate Face Criticism for Alleged 5·18 Demeaning Remarks
- Standard Chartered to Cut Support Staff by 15% by 2030 as AI Adoption Expands
- "How Did an Employee Who Loved Samsung End Up Like This?"... Past Video of Samsung Electronics Union Chairman Resurfaces
Despite the continued confirmation of inflation rates in the 2% range, the Bank of Japan (BOJ) remains cautious about raising the benchmark interest rate. BOJ Governor Kazuo Ueda has maintained the stance that interest rates will only be raised when there is confidence that inflation will sustainably reach 2%, supported by solid domestic demand and wage increases. On the 18th, he stated that "a little more time" is needed to judge whether the 2% price stability target is on a sustainable path, but also expressed the possibility of raising interest rates in July if economic indicators support it.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
