The Japanese government reported that consumer prices in the country rose by 3.0% year-on-year in November. According to the official report, the price increase was mainly driven by the cost of food and energy. These sectors are noted to be putting pressure on the overall price index. Japan's statistics bureau recorded that the annual increase reflects a persistent upward trend, despite the efforts of the government and the Bank of Japan to mitigate the impact on households. Analysts say that a combination of external factors, such as energy market volatility and the yen's depreciation, is sustaining inflationary pressures on the economy. The rise in prices continues to be one of the main concerns for the government of Prime Minister Fumio Kishida and the Bank of Japan, which is pursuing a historically loose monetary policy to stimulate domestic demand. However, experts warn that inflation above the official target could pressure the institution to reconsider its stance in 2026.
