Japan’s Inflation Tops Forecasts, Supporting BOJ Rate Hike Bets
- Two-year sovereign bond yield jumps to highest since 2011
- Inflation has matched or exceeded BOJ target for 22 months
Consumer prices excluding fresh food rose 2% from a year ago.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
Japan’s benchmark inflation topped estimates in January, supporting the case for the central bank to scrap its negative interest rate in the coming months.
Bond yields jumped after consumer prices excluding fresh food rose 2% from a year ago, in line with the Bank of Japan’s inflation target. The two-year note yield climbed to the highest level since 2011 after the data from the internal affairs ministry Tuesday exceeded a consensus estimate of 1.9%.