According to the Ministry of Internal Affairs and Communications of Japan, consumer prices in July increased by 2.6% compared to July 2021, when the indicator was fixed at 2.4%. Analysts note that the growth rate of consumer prices has become the highest since April 2014, while the rise was marked for the 11th month in a row. It is noted that the acceleration of inflation is caused by the rise in fuel and food prices against the background of the conflict in Ukraine and the sharp depreciation of the Japanese yen. Inflation excluding fresh food (a key indicator tracked by the Bank of Japan) increased by 2.4% in annual terms in July after rising by 2.2% in June. The indicator exceeded the target level of the central bank (2%) for the fourth month in a row. Food prices rose by 4.4% last month, fuel and utilities rose by 14.7%, clothing and footwear increased in price by 1.4%, furniture – by 3.9%. At the same time, transport services fell by 0.2%, medical services – by 0.8% On a monthly basis, consumer prices in Japan increased by 0.5% in July compared to June, while the growth rate was the highest since January 2021.
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