Japan's inflation is at its lowest level in four years.

VTV.vn - Inflation data in Japan unexpectedly cooled more sharply than forecast in April, despite pressures from fluctuating import prices due to conflicts in the Middle East.

Data released on May 22nd showed that Japan's core consumer price index (CPI) rose 1.4% in April 2026 compared to the same period last year. This is the slowest annual rate of increase since March 2022. The main reason for this is the impact of government subsidies on tuition fees.

Although the price increase has temporarily slowed, analysts predict inflation will soon accelerate again in the coming months. High oil costs and supply disruptions due to conflict in the Middle East are prompting businesses to raise prices across a range of products and services.

The 1.4% increase in core CPI (excluding fluctuations in fresh food prices) was lower than the market forecast of a 1.7% increase. Previously, the index recorded a 1.8% increase in March.

Newly released economic data is a crucial basis for the Bank of Japan (BoJ) to consider at its policy meeting next month. Observers expect the central bank's board to raise the short-term policy interest rate from 0.75% to 1%.

Financial markets are reeling after the conflict in Iran paralyzed shipping through the Strait of Hormuz, a strategic choke point for approximately 20% of global oil and gas flows. This situation has not only driven crude oil prices soaring but has also caused the US dollar to appreciate sharply against the yen, adding further inflationary pressure on Japan.

Conflicts in the Middle East have further complicated the Bank of Japan's interest rate hike trajectory. The conflict, on the one hand, increases inflationary pressure, and on the other hand, puts strain on an economy heavily reliant on fuel imports from the Middle East. The sharp rise in oil and chemical prices due to the conflict in Iran has further fueled speculation that Japan may tighten monetary policy in the near future.

Source: https://vtv.vn/lam-phat-cua-nhat-ban-thap-nhat-trong-4-nam-qua-100260522152352842.htm