Japan records the highest inflation rate in 40 years

18 November, 2022
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Japan records the highest inflation rate in 40 years

The rise in consumer prices in Japan reached a level not seen since 1982, against the background of the depreciation of the yen against the dollar, which led to an increase in the cost of imports and a significant increase in energy prices.


Japan's inflation rate was 3.6 percent in October in one year, excluding fresh produce, according to data published Friday, slightly higher than the 3.5 percent expected by economists polled by Bloomberg, compared to 3 percent in September. .


Inflation is more moderate (2.5 percent) if energy prices are not taken into account, but remains higher than in September due to higher prices for other products, particularly foodstuffs.


Inflation in Japan since April has exceeded the rate set by the central bank as a target (2% excluding fresh products), but “cost inflation” driven by higher energy and food prices does not satisfy the institution, which still believes that conditions have not met to tighten monetary policy in Japan.


This large difference between the monetary policy of the Bank of Japan and the noticeable tightening in other advanced economies, led by the United States, led to a decline in the price of the yen against the dollar, and thus an increase in the cost of Japanese imports.


Japan's trade deficit led to a decline in national gross domestic product in the third quarter by 0.3 percent from the previous quarter, according to preliminary figures published on Tuesday.


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