Inflation Rate (CPI): Japan

Analysis# Japan Inflation Rate (CPI) Japan's inflation rate stands at 2.1% in 2026, a moderate level reflecting the country's long struggle with price stability. Since 1980, inflation has declined 73.1% from its peak of 7.8%, marking a dramatic structural shift in the Japanese economy. The 2009 low of -1.3% exemplifies the deflationary pressures that plagued the nation for nearly two decades following the asset bubble collapse. The period from 2017 to 2021 saw persistently weak inflation below 1%, with outright deflation in 2021. A sharp rebound occurred in 2022–2023, when inflation surged to 3.3% amid global supply chain disruptions and energy shocks. The recent moderation to 2.1% in 2026 suggests stabilization toward levels consistent with the Bank of Japan's price stability target.