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A shopper shops at a supermarket in Tokyo on February 27, 2024.
Kazuhira Legs | Afp | Getty Images
Core inflation rate in Japan rose to a 16-month high of 3% year-on-year in December, bolstering the case for a rate hike by the Bank of Japan.
This was in line with the inflation expectations of economists polled by Reuters and exceeded the 2.7% rise in prices recorded in November.
December’s readings mean the country’s core inflation has met or exceeded the Bank of Japan’s 2% target for 33 consecutive months. Core inflation only excludes fresh food prices, but includes energy.
Japan’s headline inflation rate was 3.6%, up sharply from 2.9% in November and reaching the highest level since January 2023.
The reading comes amid the Bank of Japan’s policy meeting, which is due to conclude today. High inflation gives the Bank of Japan more room to raise rates.
So-called “core” inflation, which excludes both fresh food and energy prices and is tracked by the Bank of Japan, has held steady at 2.4%.
Immediately after the publication of the data, the yen weakened slightly to 156.1 per dollar.
