Consumers perceive inflation as much higher than official figures indicate at the moment, largely due to sharp increases in the price of things like restaurant dining, hotel accommodation and gasoline.

Japan statistics fail to fully capture inflation surge

Consumers feel price rise over 10 points higher than official data

MASAHARU TATENO, Nikkei staff writer

October 7, 2023 12:03 JST

TOKYO -- Japan's official inflation statistics appear not to fully reflect actual price rises because they are calculated based on past consumption patterns, making it difficult for policymakers and businesses to assess the actual state of the economy.

An alternative calculation that reflects more recent consumption trends suggests the country's consumer inflation in August was 0.5 point higher than the official figure. Moreover, a Bank of Japan (BOJ) survey shows that consumers feel the pace of price increases is much faster than the official inflation reading.