Japan’s Cooling Inflation Also Offers Encouraging Signs for BOJ
- Core prices weaken as expected on deeper falls in energy fees
- Service price gains suggest wider inflation trend building
A deeper measure of the inflation trend that strips out fresh food and energy prices decelerated to 3.8%, also in line with forecasts.
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Japan’s inflation slowed in line with expectations while services showed signs that underlying price growth is spreading more widely in the economy, a key trend followed by the central bank amid ongoing speculation it will pare back its stimulus in coming months.
Consumer prices excluding fresh food items rose 2.5% from a year ago as falls in energy costs deepened and gains in processed food prices eased, the internal affairs ministry reported Friday. The result matched forecasts by economists.