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Japan’s consumer inflation reached its highest level in 40 years in October

Japanese consumer core inflation hit a 40-year high in October. The weakening of the yen has pushed up companies’ raw material costs. This leaves some companies with little choice but to pass on the higher prices to households.

The nationwide core consumer price index (CPI), which excludes fresh food prices, rose 3.5% in October.

The increase is the fastest since April 1982 and exceeds the previous month’s rise of 3.0%. It also indicates that the CPI will exceed the central bank’s inflation target of 2% for the seventh month in a row.

Despite rising price pressures and growing household concerns, the Bank of Japan (BOJ) has declined to join the global trend of raising interest rates and has pledged to stick to its simplified policy and fiscal easing advice.

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