Inflation in Japan Reaches 3.7% in November Breaking 1981 Record
In this Nov. 19, 2014 file photo, a man walks by the Bank of Japan headquarters in Tokyo
TOKYO (Sputnik) – Inflation in Japan in November reached 3.7% month-on-month for the first time in the last 41 years, the data of the Japanese Ministry of Internal Affairs and Communications showed on Friday. This significantly exceeds the 2% inflation target set by the Bank of Japan. The increase in inflation was mainly spurred by a sharp increase in commodity and food prices. Food prices, except for volatile fresh food, rose by 6.8% compared to November 2021. Leaf lettuce (36.9%), vegetable oil (35%), chum salmon (26.8%), potato chips (18%), bread (14.5%), and fresh seafood (13.6%) showed the highest increase in prices. Gas prices rose 21%, residential and office gas prices surged by 28.9%, and electricity prices increased by 20.1%. Transportation prices increased by 6.7%, and cellular network prices surged by 20.1%. Japan has been facing an increase in prices for 14 months in a row due to the Japanese yen’s record-low exchange rate. The situation significantly worsened after Western countries imposed sanctions on Russia over its special military operation in Ukraine. This led to an unprecedented growth in prices for energy resources, which Tokyo must import in great quantities. In October, the US dollar was trading at 150 yen in Japan for the first time since 1990.
