A customer shops at a supermarket in Tokyo on February 27, 2024.
Kazuhiro Nogi | Afp | Getty Images
Core inflation rate in Japan rose to a 16-month high of 3% in December, year-on-year, strengthening the case for a rate hike from the Bank of Japan.
This result is in line with inflation expectations of economists polled by Reuters and higher than the 2.7% price growth recorded in November.
The December figures mean the country’s core inflation has matched or exceeded the Bank of Japan’s 2% target for 33 consecutive months. The core inflation figure does not only take into account fresh food prices, but includes energy.
The overall inflation rate in Japan stood at 3.6%, accelerating sharply from 2.9% in November and reaching its highest level since January 2023.
The reading comes amid the Bank of Japan’s policy meeting, which is expected to conclude today. A high inflation figure gives the BoJ more room to raise rates.
The so-called “core-core” inflation rate, which does not take into account the prices of fresh food and energy and is monitored by the BOJ, remained stable at 2.4%.
Immediately after the data was released, the yen weakened slightly to trade at 156.1 against the dollar.
