Japan’s inflation reaches its highest level in 41 years

• Japan’s core consumer price inflation crept up to 3.7%.
• High import prices made the economy worsen.
• In the US, the annual inflation rate is 7.1%,  EU and the UK, it is 11.1% and 10.1%, respectively.

In November, Japan’s core consumer price inflation crept up to 3.7%, the highest level since 1981.

That was when a crisis in the Middle East made it hard to make oil, which drove up the price of energy.

But after decades of trying to increase inflation, Japan’s consumers now have to deal with higher prices even though their wages have stayed the same.

Up until now, the Bank of Japan (BOJ) kept its extremely loose monetary policy to help the economy.

But earlier this week, it surprised the market by raising the interest rate cap on its 10-year government bonds from 0.25% to 0.5%.

Because of this, the value of the Japanese yen has gone up against the US dollar. For the first time since 1990, 151 yen equals one US dollar.

The weak currency has made the country’s inflation worse by making import prices rise even faster, which was already happening because of the war in Ukraine.

Japan has one of the lowest rates of inflation in the world. It has also gone against the trend of other G7 countries, which have been gradually raising interest rates to stop prices from going up.

In the US, the annual inflation rate is 7.1%, while in the EU and the UK, it is 11.1% and 10.1%, respectively.

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