Japanese inflation cools to 17-month low

Japanese inflation slowed in December to its lowest in 17 months, according to figures released late on Thursday by the government, as energy prices fell and upwards pressure on core consumer prices eased.

The consumer price index (CPI) for last month was 2.6% higher than December 2022, slowing from the 2.8% inflation rate seen in November, as food price inflation slowed to a 14-month low of 6.7% from 7.3%.

This was the lowest rate of headline CPI inflation since July 2022, after it peaked to 4.3% in January 2023.

Excluding fresh food prices, inflation slowed to 2.3% from 2.5%, in line with market estimates. Meanwhile, excluding food and energy, core inflation eased to 3.7% from 3.8%.