Japan's inflation eases to 2.7% in August

[A world globe with an Japanese flag pin showing Japan]
Richard Drury

* Japan's annual inflation rate eased to 2.7% in August 2025 from 3.1% in the previous month, marking the lowest reading since October 2024.
* The slowdown was driven mainly by more significant drops in electricity prices, thanks to government subsidies, and a fall in gas prices.
* Inflation accelerated for housing, clothing, transport, communications, and miscellaneous goods.
* On the food side, prices rose 7.2%, easing from July’s five-month peak of 7.6%, driven by the smallest gain in rice prices in eight months amid Tokyo’s ongoing efforts to curb staple food costs.
* Core inflation, which excludes fresh food but includes energy, also stood at 2.7% annually, matching market expectations and reaching a nine-month low.
* On a monthly basis, the CPI edged up 0.1%, holding steady for the third straight month.

MORE ON JAPAN

* Nikkei 225 Climbs As Global Easing Bets Drive Record Rally [https://seekingalpha.com/article/4822606-nikkei-225-climbs-as-global-easing-bets-drive-record-rally]
* DXJ: Is This Japanese Dividend-Focused, Currency-Hedged ETF For You? [https://seekingalpha.com/article/4821149-dxj-is-japanese-dividend-focused-currency-hedged-etf-for-you]
* EWJ Japan ETF: Political Turmoil In Japan Necessitates Caution [https://seekingalpha.com/article/4820981-ewj-japan-etf-political-turmoil-in-japan-necessitates-caution]
* Asia markets mixed after Fed rate cut; Japan hits new record high [https://seekingalpha.com/news/4495904-asia-markets-mixed-after-fed-rate-cut-japan-hits-new-record-high]
* Asia markets mixed, Japan's Nikkei nears record highs amid cautious trading; eyes on Fed decision [https://seekingalpha.com/news/4495499-asia-markets-mixed-japans-nikkei-nears-record-highs-amid-cautious-trading-eyes-on-fed-decision]