Inflation Japan 2006

Average inflation: 0.2%

Inflation in 2006

Inflation is very low at 0.2%, well below the ECB target.

Peak and Trough

The highest inflation was in August at 0.9%. The lowest inflation was in March at -0.2%.

Highest month
August: 0.9%
Lowest month
March: -0.2%
Difference
1.1 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Transport with an average of 2.3%. The lowest price increase was in Communication with an average of -3.6%.

Highest increase
Transport: 2.3%
Lowest increase
Communication: -3.6%

Historical Context

Inflation is around the 5-year average of -0.3%.

5-year average
-0.3%
10-year average
-0.1%
All-time high (1991)
3.3%
All-time low (2002)
-0.9%

Trend

Over the period 2004-2006, inflation has remained relatively stable. Compared to 2005, inflation has risen by 0.5 percentage points.

Change vs. previous year
+0.5 percentage points
Largest monthly swing
August: +1.2 percentage points

ECB Target

Inflation is 1.8 percentage points below the ECB target of 2.0%. Too low inflation may indicate economic weakness.

Purchasing Power

At this inflation rate, purchasing power gradually decreases. The impact on daily expenses is relatively limited.

What you could buy for ¥100 this year will cost approximately ¥100 next year at this inflation rate.

Multi-year trend

Monthly figures 2006

Inflation by category

Food and non-alcoholic beverages
0.6%
+0.4 vs avg.
Alcoholic beverages, tobacco and narcotics
0.2%
-0.0 vs avg.
Clothing and footwear
0.8%
+0.6 vs avg.
Housing, water, electricity, gas and other fuels
0.8%
+0.6 vs avg.
Furnishings, household equipment and maintenance
-2.2%
-2.4 vs avg.
Health
-0.6%
-0.8 vs avg.
Transport
2.3%
+2.1 vs avg.
Communication
-3.6%
-3.8 vs avg.
Recreation and culture
-1.8%
-2.0 vs avg.
Education
0.7%
+0.5 vs avg.
Restaurants and hotels
0.5%
+0.3 vs avg.
Miscellaneous goods and services
0.3%
+0.1 vs avg.

Inflation differs per product group. Click on a category for the historical trend.

Month overview

Month Inflation Difference vs. 2005
January -0.1% 0.0
February -0.1% +0.2
March -0.2% 0.0
April -0.1% -0.1
May 0.1% -0.1
June 0.5% +1.0
July 0.3% +0.6
August 0.9% +1.2
September 0.6% +0.9
October 0.4% +1.1
November 0.3% +1.1
December 0.3% +0.4
Average 0.2%

Data source

Data from OECD. Last updated: 13/01/2026.

See also