Overview
- Japan’s nationwide core consumer price index excluding fresh food rose 1.4% year‑on‑year in April, marking the slowest pace since March 2022 and the third month below 2%.
- The drop from March’s 1.8% pace was driven in part by policy actions that directly lowered CPI components, including gasoline subsidies and new education cost relief.
- Energy prices fell 3.9% year‑on‑year and gasoline prices dropped 9.7% because government subsidies have kept pump prices near ¥170 per liter.
- The government’s April measures included free public elementary school lunches and expanded subsidies for private high‑school tuition, both of which reduced measured household costs.
- Officials and reporters warn the moderation may be temporary because renewed Middle East tensions and related material shortages create a credible risk of inflation re‑acceleration.