Japan prices, 22-years high growth

Tokyo consumer prices rise at a speed not experienced for 22 years, increasing by 2.7% in April, as compared to the same period of last year.

The usual pace of price increase was set at 1% per year. Now, after Japan increased its sales tax from 5% to 8% on April 1, prices also went up.

The inflation rate in Japan’s capital is very likely to influence the whole country in the following months, as the government is trying to stimulate domestic demand through higher inflation.

‘Nationwide inflation probably accelerated by even more, as the national Consumer Price Index (CPI) has a lower weight on components which are not subject to the sales tax, notably housing rent and school fees,’ said Marcel Thieliant, Japan economist.