Japan closed 2019 with an inflation of 0.6%

Japan had an annual 0.6% increase in its consumer price index (CPI) in 2019, below the 2% target set by the authorities, and posted a 0.7% rise in December compared to the same month of 2018, the government reported Friday.

That 0.6% annual average inflation in 2019 excludes the prices of fresh food due to its high volatility, according to the data provided by the Statistics Office of the Ministry of Interior and Communications.

Considering all the concepts, the average annual variation of the CPI in 2019 in Japan was 0.5%. The greatest variation was recorded by the fuel, water and electricity sector (+ 2.3%), while education had a negative variation of 1.5%.

This is the third consecutive year of positive variation in the annual average of inflation. In 2018 it was +0.9%, in 2017 it was +0.5% and in 2016, on the other hand, the variation was negative (-0.3%).

The Bank of Japan maintains an inflation target of 2%. The highest annual average during this century in the positive variation of the CPI was recorded in 2014, 2.6%, also excluding food prices.

In 2009, on the other hand, the CPI registered a variation of -1.3%.

As for the monthly data, last December the CPI rose by 0.7% in Japan excluding food and 0.8% in all items, in both cases compared to the same month of 2018.

The largest monthly record was for the furniture and household utensils sector (+3.0%), while the education one had a negative variation of 7.8%.