Japanese government data showed that “inflation reached 2.8% in August, the highest level since 2014.”
“The last time the inflation rate reached this percentage, prices rose exaggeratedly due to the increase in value added tax, and, except for those years when tax increases affected the inflation rate, August inflation was the highest rate in almost 31 years. years,” according to AFP.
Interior Ministry data showed that the cost of electricity, gas and gasoline were among the main reasons for the increase in prices.
It is noteworthy that the inflation rate in August slightly exceeds the expectations of all experts by 2.7%, and also follows the growth of 2.4% in July.
The announcement comes ahead of the BOJ meeting this week as other central banks decide to raise interest rates to fight high inflation, but the BOJ sees the current rate hike as temporary and due to exceptional events. For example, the Ukrainian crisis.
The growing gap between the Bank’s policy and rate hikes in other countries caused the Japanese yen to fall, hitting a low against the dollar.
Source: El Iktisad
