Japan Inflation Eases to 1.6 Percent in February

Mar 24, 2026 | News On Japan

Mar 24, 2026 (News On Japan) - Japan’s nationwide consumer price index rose 1.6 percent in February from a year earlier, marking the first time in nearly four years that the rate has fallen below 2 percent, largely due to the abolition of a temporary gasoline tax rate and the impact of government subsidies.

According to data released by the Ministry of Internal Affairs and Communications, the nationwide CPI excluding fresh food, which is subject to significant price fluctuations, increased 1.6 percent compared to the same month last year.

While the rate of increase remains relatively high due in part to rising food prices, the return to the 1 percent range marks the first time since March 2022, a span of three years and eleven months.

Food prices continued to climb sharply, with rice rising 17.1 percent, coffee beans surging 51.4 percent, chocolate increasing 26.9 percent, yellowtail up 23.4 percent, and prepared curry meals rising 12.3 percent.

In addition, mobile communication charges rose 11.0 percent, while accommodation fees increased 6.0 percent amid a recovery in inbound tourism demand.

On the other hand, government subsidies for electricity and gas contributed to declines in utility costs, with electricity prices falling 8.0 percent and city gas prices down 8.2 percent. Gasoline prices also dropped 14.9 percent following the removal of the temporary tax rate.

Furthermore, high school tuition fees fell sharply by 94.1 percent due to a government support program introduced last year targeting households with annual incomes of approximately 9.1 million yen or more. As a result, the overall index excluding fresh food declined 0.3 percent compared to the previous month.

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