Japan's economy grew less than initially calculated in view of the rise in inflation in the final quarter of 2022. According to revised government data on Thursday, the gross domestic product (GDP) of the world's third-largest economy, ahead of Germany, rose by 0.1 percent on the year.

The official statisticians had initially calculated an increase of 0.6 percent. The reason for the downward correction is that the citizens of the Far Eastern island kingdom held back on increased spending in view of the rise in inflation.

Inflation in Japan is lower compared to other major economies, but high by Japanese standards. In the final quarter of last year, Japan's economy recovered from an unexpected decline in the previous three months. Compared to the previous quarter, however, it grew by just under 0.02 percent instead of the 0.2 percent initially calculated. Private consumption, which in Japan contributes around 60 percent to the country's economic output, rose by 0.3 percent instead of the 0.5 percent initially thought.

The government in Tokyo is therefore considering further relief measures for the households, which should dampen the official inflation rates. However, the central bank takes the position that the price increases are not sustainable. Inflationary pressures are therefore expected to ease later in the year. Against this background, the central bank has stuck to its aggressively relaxed monetary policy. The nominated new central bank governor Kazuo Ueda is also likely to stick to this course.