Inflation Rate in Japan decreased to 3.50 percent in May from 3.60 percent in April of 2025. This dataset provides the latest reported value for - Japan Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In 2024, Japan had an average inflation rate estimated at 2.74 percent, marking the highest rate of inflation in Japan in almost a decade. However, this figure was still very low compared to most other major economies, such as Japan's fellow G7 members, four of which had inflation rates around six or seven percent in 2023 due to the global inflation crisis. Why is Japan's inflation rate lower? There are a number of contributing factors to Japan's relatively low inflation rate, even during economic crises. Japan eased its Covid restrictions more slowly than most other major economies, this prevented post-pandemic consumer spending that may have driven inflation through supply chain issues caused by higher demand. As the majority of Japan's food and energy comes from overseas, and has done so for decades, the government has mechanisms in place to prevent energy and wheat prices from rising too quickly. Because of this, Japan was able to shield its private sector from many of the negative knock on effects from Russia's invasion of Ukraine, which had a significant impact on both sectors globally. Persistent deflation and national debt An additional factor that has eased the impact of inflation on Japan's economy is the fact that it experienced deflation before the pandemic. Deflation has been a persistent problem in Japan since the asset price bubble burst in 1992, and has been symptomatic of Japan's staggering national debt thereafter. For almost 30 years, a combination of quantitative easing, low interest rates (below 0.5 percent since 1995, and at -0.1% since 2016), and a lack of spending due to low wages and an aging population have combined to give Japan the highest national debt in the world in absolute terms, and second-highest debt in relation to its GDP, after Venezuela. Despite this soaring debt, Japan remains the fourth-largest economy in the world, behind the U.S., China, and Germany.

Historical chart and dataset showing Japan inflation rate by year from 1960 to 2024.

Core consumer prices in Japan increased 3.70 percent in May of 2025 over the same month in the previous year. This dataset provides - Japan Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The statistic shows the growth rate of the real gross domestic product (GDP) in Japan from 2020 to 2024, with projections up until 2030. In 2023, Japan's GDP increased by 1.49 percent compared to the previous year. For comparison, the GDP growth rate of China had reached about 8.45 percent that same year.Gross domestic product growth rate in JapanGDP serves as one of the most heavily relied upon indicators to gauge the state and health of a country’s economy. GDP is the total market value of all final goods and services that have been produced within a nation’s borders in a given period of time, usually a year. GDP figures allow a more fundamental understanding of a country’s economy. Year-on-year GDP growth acts as a helpful and clear sign of the direction in which a country is moving in economic terms. Real GDP is especially useful and insightful as it takes price changes (inflation and deflation) into account.The gross domestic product growth rate in Japan has been shaky since the recession of 2008 struck the world economy like a bolt out of the blue and Japan is still yet to gain a solid foothold. Despite its ongoing financial predicament however, Japan remains one of the world’s most highly developed economies. The economy of Japan is the third largest worldwide by nominal GDP and the nation has a very active manufacturing sector. It is active in the auto manufacturing sector, the third largest in the world after the United States and China, and has an electronics industry that is counted among the worlds most innovative. Japan can boast many titles, but perhaps the most significant to its future stability is that which relates to its astronomical national debts, currently running at over 200 percent of GDP, roughly 10.5 trillion US dollars.

GDP Deflator in Japan increased to 109 points in the fourth quarter of 2023 from 105.10 points in the third quarter of 2023. This dataset provides the latest reported value for - Japan GDP Deflator - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

At *** percent in June 2023, Japan’s unemployment rate is very low compared to other advanced economies. The fact that it has remained this low for a full year would concern most economists in any other country. However, since Japan has been fighting deflation for many years, the normal rationale does not apply. Causes of unemployment Unemployment can arise from an economic recession, when demand falls and firms lay off workers. It can also be the result of workers and firms not matching, such as there being too many lawyers and not enough doctors in an area. Finally, search unemployment refers to the time between a worker ending one job and starting another. Economists consider this to be efficient in most cases because it gives firms and workers the time to find the best match. The Japanese context Japan’s inflation rate has remained stubbornly low since the 1990s, sometimes even becoming negative - or deflation. This has caused firms to delay investment and consumers to delay major purchases, which has in turn led to low GDP growth. In most economies, this would lead to high inflation. However, given the decreasing population and thus the decreasing workforce, it is possible that firms are retaining workers due to labor scarcity. It is also possible that low unemployment is a product of high government spending or low workforce participation. In any event, this statistic underscores the unique situation of the Japanese economy.

In 2024, Japan's gross domestic product (GDP) grew by three percent at current prices, according to the second preliminary announcement in March 2025. A year earlier, the highest growth rate of Japan’s nominal GDP in almost three decades was recorded. The nominal GDP measures the value of all goods and services produced in an economy, including price changes. GDP growth and inflation Japan’s real GDP growth, which is adjusted for inflation, was lower at 0.1 percent. After decades of struggling with deflation and attempts to reach a two percent inflation target with economic stimulus packages and monetary easing policies, consumer prices in Japan increased by almost 3.3 percent in 2023, led by global inflation. This development prompted the Bank of Japan to shift its monetary policy and raise the short-term interest rate for the first time in 17 years in 2024. Japan lost its status as the third-largest economy Many countries have raised interest rates in response to higher inflation in the past years. Since Japan’s central bank has done so at a much slower pace, a widening interest gap emerged between Japan and other major economies of the world. This is also one of the reasons for the depreciation of the yen against the dollar. Due to the weak yen, Japan’s GDP declined when converted into U.S. dollars, resulting in Japan losing its status as the third-largest economy in terms of GDP to Germany in 2023.

Inflation rates in the Association of Southeast Asian Nations (ASEAN) ranged from 31 percent inflation in Laos to 0.37 percent inflation in Brunei Darussalam. While countries like Vietnam are likely benefitting from more stable inflation than earlier seen, only a few countries are in the 2 to 6 percent range that many economists view as optimal for emerging economies. Effects of high inflation High inflation is generally detrimental to the economy. Prices tend to rise faster than wages, meaning that people and firms have less purchasing power. This in turn leads to slower growth in the gross domestic product (GDP). It also leads to a weaker currency. For countries with a positive trade balance this can be beneficial, because exports are relatively cheaper to foreign buyers. Through the same mechanism, net importers suffer from a weaker currency. Additionally, inflation makes a country’s national debt less expensive if the debt is denominated in the local currency. However, most of this debt is in U.S. dollars, so inflation makes the debt more difficult to service and repay. Risks of deflation With deflation, consumers and firms delay investments because they expect prices to be lower in the future. This slows consumption and investment, two major components of GDP growth. The most common example of this is Japan, where the GDP growth rate has been low for a long time due, in large part, to deflation. For this reason, countries like Brunei would rather see low and stable inflation than slight deflation.

In most countries included, people expect inflation rates to remain high for at least another year. In Japan, ** percent think that inflation will never return to normal. The country has seen very stable inflation rates for several years, but they have increased somewhat recently. On the other hand, ** percent of the respondents in China said that inflation already is back to normal, with the country at risk of falling into deflation. Inflation increased rapidly around the world through 2022 and 2023, before it started falling in some countries in 2024.

Im Jahr 2024 hat die durchschnittliche Inflationsrate in Japan rund 2,7 Prozent betragen. Für das Jahr 2025 wird die durchschnittliche Inflationsrate in Japan auf rund 2,4 Prozent prognostiziert. Die Statistik zeigt die durchschnittliche Inflationsrate in Japan im Zeitraum 1980 bis 2024 und Prognosen bis zum Jahr 2030. Die durchschnittliche Inflationsrate in Japan soll Prognosen zufolge zwischen 2025 und 2030 um insgesamt 0,4 Prozentpunkte sinken. Die Diskontinuität in 2027, 2028 und 2029 zeigt jedoch, dass dieser Rückgang nicht kontinuierlich ist. Nach dieser Prognose soll die durchschnittliche Inflationsrate im Jahr 2030 zum ersten Mal in Folge auf 2,01 Prozent gesunken sein. Die Inflationsrate bildet Veränderungen der Kosten für einen festgelegten Warenkorb ab, der eine repräsentative Auswahl an Waren und Dienstleistungen enthält. Sie wird aus dem Verbraucherpreisindex (VPI) abgeleitet.Hier können Sie weitere Einblicke bezüglich der durchschnittlichen Inflationsrate in Taiwan, Hongkong und Korea, Republik von finden.