The Strategist

Japan expect the highest in 40 years growth of inflation

12/16/2022 - 10:35

Given that businesses are increasingly prepared to pass on rising expenses for energy, food, and raw materials to the end consumer, consumer price inflation in Japan in November will probably hit a maximum of 40 years, show findings of a survey conducted by Reuters.

Cost of Living via flickr
Cost of Living via flickr
According to survey participants, the core consumer price index—which includes energy but excludes volatile fresh food prices—likely increased 3.7% in November compared to the same month a year earlier.

Index growth in October was 3.6%. Since core annual inflation was 4.0% in December 1981, if the estimate is accurate, price growth will be accelerating and will be doing so at its strongest rate since then.

According to economists at the Dai-ichi Life Research Institute, while increases in energy prices are slowing, higher food prices are still contributing to inflation. They noted that businesses are becoming more likely to pass on growing costs to customers.