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Japan inflation hits year high as core CPI holds at 1.8% on energy pressure

8/21/2026

1.8%: Japan's core inflation rate for the latest period, in line with consensus, as energy costs drove the country's headline rate to its highest reading of the year.

Core CPI in Japan strips fresh food prices from the basket but keeps energy inside the measure. The figure came in at 1.8%, matching analyst expectations.

The headline rate, which carries the complete consumer basket, climbed to a year-to-date peak. Energy prices are the cited driver. The two readings together narrow the story considerably.

Core at 1.8% and on consensus means forecasters had the energy component priced correctly within that measure.