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Japan’s National Core Consumer Price Index (CPI) slowed to 2.0% year-over-year in January 2026, down from 2.4% in December 2025, according to data updated on 19 February 2026. The core gauge, which tracks price changes excluding volatile components, remains above the Bank of Japan’s 2% target but shows a clear easing in inflationary momentum.
The figures indicate that while prices are still rising compared with a year earlier, the pace of increase is moderating. On a year-over-year basis, the “actual” January reading compares price levels to January a year ago, while the “previous” December figure reflected changes versus December of the prior year. The deceleration may feed into market expectations around the timing and scale of any future adjustments to Japan’s ultra-loose monetary stance, as policymakers assess whether inflation is becoming more sustainable or losing steam.