Source link : https://www.mondialnews.com/2025/07/19/japans-core-inflation-slows-yet-stays-above-target-sparking-rate-hike-speculation/
Japan’s core inflation rate eased in the latest data release but remained above the Bank of Japan’s (BOJ) 2% target, signaling persistent underlying price pressures in the world’s third-largest economy. The slowdown in inflation, however modest, has not diminished market expectations that the BOJ may proceed with cautious monetary tightening after years of ultra-loose policy. Analysts and investors are closely monitoring upcoming economic indicators and policy signals as the central bank balances its commitment to supporting growth with the need to contain inflationary risks, keeping the outlook for interest rate hikes on the table.
Japan’s Core Inflation Moderates Amid Persistent Consumer Price Pressures
Japan’s core inflation has shown signs of easing but remains stubbornly above the Bank of Japan’s (BOJ) 2% target, signaling persistent consumer price pressures that continue to influence market expectations. Key sectors such as energy and food have maintained elevated price levels, counterbalancing the modest slowdown observed in other areas. This dynamic has kept the debate over potential monetary policy adjustments active, with investors weighing the possibility of a shift away from the BOJ’s historically accommodative stance.
- Energy costs: Continued volatility in global oil prices sustains high household expenses.
- Food prices: Supply chain constraints and adverse weather patterns contribute to price gains.
- Services inflation: A slower rise signals…
—-
Author : Caleb Wilson
Publish date : 2025-07-19 22:48:00
Copyright for syndicated content belongs to the linked Source.
—-
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8