Japan's August Consumer Prices Up 2.7%...Below 3% for First Time in Nine Months

Japan's consumer price index (CPI), excluding fresh food, rose 2.7% in August compared to the same month last year, according to an announcement by the Ministry of Internal Affairs and Communications on September 19.

This marks the 48th consecutive month of increases. However, it is the first time in nine months that the CPI growth rate has fallen below 3%.

Reuters Yonhap News

The CPI peaked at 3.7% in May, then declined to 3.3% in June and 3.1% in July, showing a downward trend.

The Nihon Keizai Shimbun reported that the slowdown in the growth rate for three consecutive months can be attributed to the government's subsidy policy for electricity and gas bills.

Rice prices rose 69.7% year-on-year, which is a slower pace compared to the 90.7% increase in the previous month.