FX.co ★ Japan’s February CPI Falls Deeper Into Deflation at -0.6% MoM

Japan’s consumer price index (CPI), not seasonally adjusted, weakened further into negative territory in February 2026, underscoring renewed deflationary pressure in the world’s fourth-largest economy. Month-over-month, CPI fell by 0.6% in February, following a 0.1% decline in January, according to data updated on 23 March 2026.

The February reading marks a sharp acceleration in price declines compared with the previous month’s movement. While January’s -0.1% print reflected only a mild retreat in prices from December, the steeper -0.6% drop in February indicates a more pronounced loss of pricing momentum. On the standard month-over-month comparison, February’s “actual” figure measures the change from January, while the “previous” figure for January captured the change relative to December.

The deepening negative CPI print may reinforce market concerns about the durability of Japan’s inflation trend and complicate policy signaling for authorities seeking to sustain stable price growth. Investors will now watch upcoming releases closely to gauge whether February’s drop proves to be a temporary adjustment or the start of a more persistent disinflationary phase.