“Prices Have Risen” and “Prices Are High” Are Different Statistics
There are two indicators with different characteristics for international comparisons of prices. One is the rate of increase, which shows how much prices have changed compared with the previous year; the other is an index showing how far the price level is from a benchmark. Japan occupies entirely different positions on these two measures.
79th out of 193 Countries and Regions by Rate of Increase
Japan’s consumer price inflation rate is 2.74%. Ranked from lowest to highest, it is 79th out of 193 countries and regions, placing it slightly above the midpoint.
At the lower end are Iraq(-12.30%), Afghanistan(-6.60%), and the Cayman Islands(-0.63%), all of which have seen prices fall from the previous year. At the higher end are Venezuela(254.95%), Argentina(219.88%), and Sudan(138.81%). The gap between the top and bottom exceeds 267 points, so this indicator’s distribution cannot be described by “one average value.”
Japan’s GDP deflator inflation rate, another measure of price movements across the economy as a whole, is 2.89%, ranking 70th out of 213 countries and regions. This is below the global figure of 3.91%. At the high end are Zimbabwe(1,097.25%), Sudan(243.91%), and Argentina(207.61%), with a difference of two orders of magnitude.
Viewed along the rate-of-increase axis, Japan is on the stable side of the world.
9th out of 192 Countries and Regions by Price Level
However, on the consumer price level index, which shows the price level relative to the base year, Japan stands at 114.41, ranking 9th out of 192 countries and regions. The top three here are Nauru(100.18), Tuvalu(100.50), and the Cayman Islands(102.94), with all of the highest-ranked places clustered around 100.
At the opposite end are South Sudan(41,280.74), Sudan(38,796.56), and Zimbabwe(11,076.60). There are countries where prices have actually become more than 400 times higher than in the base year.
What this indicator measures is the cumulative change since the base year. Japan ranks 9th because prices have barely moved over a long period; this does not mean that it is a “country with low prices.” Even with an inflation rate around the global midpoint, Japan can be viewed cumulatively as one of the countries where prices have changed the least in the world.
GDP per Capita Ranks 53rd out of 227 Countries and Regions
When discussing prices, it is also useful to look at income levels. Nominal GDP per capita is 35,703 dollars, ranking 53rd out of 227 countries and regions.
The top three are Liechtenstein(226,809 dollars), Luxembourg(158,733 dollars), and Ireland(140,186 dollars), four to six times Japan’s level. At the bottom are Yemen(384 dollars), Afghanistan(448 dollars), and South Sudan(488 dollars), each less than one-ninetieth of Japan’s level.
Nominal GDP per capita is strongly affected by exchange-rate movements. When the currency of a country where prices have barely moved weakens, its ranking in dollar terms falls even if the purchasing power felt domestically remains unchanged.
Savings Rate Ranks 35th out of 178 Countries and Regions
The gross savings rate(as a percentage of GDP) is 31.07%, ranking 35th out of 178 countries and regions. This is above the global figure of 26.19%. The top three are Qatar(57.42%), Suriname(50.34%), and Kuwait(48.80%). At the bottom are Timor-Leste(-21.13%), Lebanon(-12.70%), and Palau(-12.70%). A negative figure indicates that the country as a whole is drawing down its savings.
What Becomes Visible When the Five Indicators Are Set Side by Side
| Indicator | Japan’s value | Rank(sample size) |
| Consumer price level(index) | 114.41 | 9th(192・in ascending order) |
| Gross savings rate(as a percentage of GDP) | 31.07% | 35th(178) |
| GDP per capita(nominal) | 35,703 dollars | 53rd(227) |
| GDP deflator inflation rate | 2.89% | 70th(213・in ascending order) |
| Consumer price inflation rate | 2.74% | 79th(193・in ascending order) |
Japan is around the middle by rate of increase, among the world’s highest by cumulative price level, and 53rd by income.
News about prices is often framed in terms of the rate of increase. Comparing only a country’s inflation rate in a given year does not reveal how its prices have moved over the long term. Only by placing cumulative price levels alongside income can we come closer to understanding what people living in that country actually feel.
Sources
- Inflation, consumer prices (annual %)（World Bank World Development Indicators FP.CPI.TOTL.ZG）
- Inflation, GDP deflator (annual %)（same source, NY.GDP.DEFL.KD.ZG）
- Consumer price index (2010 = 100)（same source, FP.CPI.TOTL）
- Gross savings (% of GDP)（same source, NY.GNS.ICTR.ZS）
- GDP per capita (current US$)（same source, NY.GDP.PCAP.CD）
Values are based on the latest year available for each indicator. Only GDP per capita uses an estimate for 2026; the others use 2024.