Japan’s Inflation Hits 31-Year High, Creating Headaches for BOJ

  • Core inflation beats estimates to rise 2.8% in August
  • Economists still see the BOJ standing pat this week after Fed
Japan Inflation Hits 31-Year High
Lock
This article is for subscribers only.

Japan’s inflation quickened to the fastest pace in over three decades excluding tax-hike distortions, creating headaches for the central bank this week as it seeks to explain why it needs to continue with monetary stimulus when inflation is far above its 2% goal.

Consumer prices excluding fresh food rose 2.8% in August from a year ago, the internal affairs ministry reported Tuesday. Analysts had forecast a 2.7% gain. It was the strongest reading since 1991, barring the effect of sales tax increases.