Indicators
Japan’s Inflation Jumps to 3%, Giving Support to Rate-Hike Case
- Acceleration driven by a phasing out of govt energy subsidies
- BOJ is expected to conduct third rate hike under Ueda Friday
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Japan’s key inflation gauge hit 3% for the first time in 16 months, underscoring the nation’s sustained price momentum just hours before the central bank is expected to hike rates for a third time under Governor Kazuo Ueda.
Consumer prices excluding fresh food rose 3% from a year earlier in December, accelerating from 2.7% in the previous month through higher energy costs, the Ministry of Internal Affairs reported Friday. The reading matched the consensus estimate and marked the first time it hit 3% since August 2023.