Japan's consumer price inflation eased to 0.3 percent year-on-year in December 2018 from 0.8 percent in the previous month, in line with market expectations. It was the lowest inflation rate since October 2017, mainly due to declines in cost of food, housing and transport. On a monthly basis, consumer prices declined 0.2 percent in December, the same pace as in November. In 2018, the average inflation rate was 1 percent. Inflation Rate in Japan averaged 2.99 percent from 1958 until 2018, reaching an all time high of 24.90 percent in February of 1974 and a record low of -2.50 percent in October of 2009.
Inflation Rate in Japan is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Japan to stand at 1.40 in 12 months time. In the long-term, the Japan Inflation Rate is projected to trend around 1.70 percent in 2020, according to our econometric models.