Nov Consumer Price Index in Japan -0.9%... Largest Drop in 10 Years and 2 Months

Impact of Accommodation Price Decline Due to Travel Promotion Policy 'GoToTravel'

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan's November Consumer Price Index (CPI) fell at the largest rate in 10 years and 2 months due to the 'Go To Travel' domestic travel promotion policy under the Yoshihide Suga administration, NHK and others reported on the 18th.

According to the report, the Ministry of Internal Affairs and Communications announced that the November CPI excluding fresh food was 101.2 (2015=100), down 0.9% compared to the same month last year. This marks the fourth consecutive month of decline, with the largest drop since September 2010 (1.1% decline) in 10 years and 2 months.

The significant drop in Japan's CPI was influenced by the government's implementation of the Go To Travel policy to revive the tourism industry hit by COVID-19, which caused accommodation fees to fall sharply. Hotel accommodation fees dropped by 34.4%, and fuel prices also fell, leading to electricity and gas charges decreasing by 7.3% and 4.5%, respectively.

Excluding the impact of Go To Travel, the Ministry stated that the CPI excluding fresh food was -0.5%. The Ministry of Internal Affairs and Communications said, "As COVID-19 spreads again, the Go To Travel policy has been temporarily suspended nationwide, and fuel prices have recently been rising. We will carefully monitor how these movements affect prices."