Annual inflation in Japan is at the highest level since 1991

Annual inflation in Japan rose in October to 3.7%, after it had recorded 3% in September, bringing it to the highest level since January 1991, in light of the rise in commodity prices and raw materials coinciding with the weakness of the yen.

The biggest pressure came from food costs, which rose by 6.2%; housing, which rose by 1.1%; fuel and water, which rose by 14.6%, and electricity, which rose by 10.9%.

Annual core inflation rose in October to 3.6%, the biggest jump since February 1982, and exceeded the Bank of Japan’s 2% target for the seventh consecutive month.

Economists do not expect the Bank of Japan to join the global trend of raising interest rates, because it believes that the acceleration of inflation will fade as import costs stop rising after tensions around the world ease.