Japanese basic inflation falls to the lowest since November 2024 when the rice cost decreases

The main level of inflation of Japan since November 2024 decreased to the lowest, which was 2.7% in August and noted the third month of decline.

The basic inflation figure – depriving fresh food prices – was corresponding to 2.7%, which is expected by economists surveyed by Reuters.

Capital inflation in the country has also dropped to 2.7%, from 3.1% in July, noting the fresh minimum since November 2024.

The so -called “basic” inflation rate, which deprives the cost of both fresh food and energy and is carefully monitored by the Japanese bank, was 3.3%, compared to 3.4%in July.

The inflation of rice, which contributed to the crisis of life in the country, significantly mitated up to 69.7%, which is compared to July 90.7%, but remains in historical highs.

The inflation figure comes when the Bank of Japan intends to announce its decision on the rate later on Friday. The Reuters economists’ poll expects that Boj will support its benchmark of 0.5%.

In the note on September 12, HSBC analysts also agreed with consensus, but predicted that Boj would raise rates by 25 basic points at their October meeting.

Analysts have stated that Boj officials are looking for signs of economic sustainability “and we believe in the second quarter of GDP, which is printed, which surpassed market expectationsCertainly delivered. “

GDP in the second quarter in Japan appeared above expectations, placing an increase of 0.3% a quarter in the second quarter of 2025, mainly due to export resilience.

This was compared to the revised Growth 0.1% is observed in the first quarterAnd it was higher than an increase by 0.1%expected by economists interviewed by Reuters.

In addition, with the completion of the transaction with trade in the United States, the exporters of Japan received some help from the risk of raising tariffs, although HSBC has warned that the slowdown in global trade could still affect them.

In late July, Tokyo has reached the deal With Washington, up to 15%of Japanese exports, which compared to 25%, that US President Donald Trump threatened in his “tariff letter”.

In a separate note, they added that high inflation pressure in Japan – due to high prices for rice – also causes more loud calls to further increase the rate.

Senior Member of the Liberal Democratic Party Tara Kona reported, said September 9. “If the Bank of Japan delays the rate growth, I think it will mean that inflation will continue and all we import would be higher.”