Inflation Rate Trends and Forecast for Japan from 1990 to 2029

Japan has faced persistent deflation since the 1990s, with rates dropping below zero multiple times, including -1.3% in 2009. The country’s "lost decade" and aging population contributed to weak demand and price stagnation. Inflation briefly spiked to 2.8% in 2014 due to a consumption tax hike.

In 2022, inflation rose to 2.5%, driven by global supply chain challenges. Projections indicate stabilization at 2.0% by 2026, reflecting Japan’s ongoing struggle to achieve sustainable inflation through monetary easing.