Japan's Core Inflation Hits 19-Month High, Strengthening Expectations for Central Bank Rate Hike

Odaily Planet Daily News: Data released earlier today shows that Japan's core consumer inflation accelerated in January, reaching 3.2% year-on-year, the fastest pace in 19 months. The stronger-than-expected growth has reinforced expectations that the Bank of Japan may continue to raise interest rates as inflationary pressures persist. The price increase seems to align with the central bank's forecasts. Analysts pointed out that service sector inflation did not accelerate, rising 1.4% year-on-year in January compared to 1.6% in December, but overall, goods inflation has not slowed. For nearly three years, Japan's inflation rate has been above the central bank's 2% target. This has prompted a shift in monetary policy. Bank of Japan Governor Kazuo Ueda previously hinted that if wage growth continues to support consumption, enabling companies to raise wages and maintain price increases, the central bank may further raise interest rates. (Jin10)