Japan Inflation Hits 2-Year Low as BOJ Calls for Price Review

Japan’s key gauge of inflation dropped to the lowest level since 2017, the latest indication of the difficulty faced by the Bank of Japan in generating price growth as speculation grows that it may add to its stimulus as early as next month.

Consumer prices excluding fresh food rose 0.5% in August from a year earlier, matching economists’ median estimate, according to the internal affairs ministry. A drop in energy prices was the biggest factor in the slowdown.