Japan’s inflation reached 3% in December 2024, driven primarily by higher energy prices. The surge comes as the government has gradually removed subsidies on electricity and gas, contributing to the rise in consumer costs. Service inflation also saw an uptick, reaching 1.6%. With inflationary pressures mounting, the Bank of Japan (BOJ) is expected to announce its third interest rate hike under Governor Kazuo Ueda’s leadership. Rising energy costs, which have significantly affected household budgets, remain a key concern. The government has introduced measures such as utility subsidies and cash handouts to ease the financial burden on citizens. However, Japan faces ongoing challenges, including a reliance on imported energy and a high aging population, which complicates efforts to stabilize the economy in the long term. Wage growth will also be crucial in managing inflation, as the government pushes for a 5% increase to support workers’ purchasing power.
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Japan Inflation Hits 3% in December: BOJ Rate Hike Likely
Inflation hits 3%, driving BOJ rate hike speculation and economic relief measures Japan's Inflation Surge: Understanding the 3% Jump in D...
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