描述
The inflation rate measures the rate at which the average price level of goods and services rises, typically assessed using the Consumer Price Index (CPI). It is calculated as an annual percentage change to observe price fluctuations and variations in the purchasing power of money. An increase in the inflation rate signifies a rise in overall price levels, reducing purchasing power—a phenomenon known as inflation. Conversely, a negative growth rate represents deflation.
Japan, after experiencing the "Lost Three Decades" from 1990 to 2021, recorded an average CPI growth rate of just 0.1%, remaining in a prolonged period of low inflation and deflation. However, in April 2022, the core CPI (excluding fresh food) finally reached an annual growth rate of 2.1%, marking the first time since 2015 that inflation surpassed the Bank of Japan's (BOJ) 2% target.
The International Monetary Fund (IMF) predicts that Japan’s CPI will gradually stabilize after 2024, reflecting a shift towards a more sustainable inflation environment after years of subdued price growth. This marks a significant change in Japan's economic landscape as inflation levels align closer to the BOJ’s long-term targets.