Indicators
Japan’s Inflation Accelerates, Keeping BOJ on Rate Hike Path
- Key inflation gauge accelerates to fastest since June 2023
- Food prices are biggest driver behind faster inflation
Overall inflation accelerated to 4% from 3.6%, according to the ministry, hitting that mark for the first time in two years.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Japan’s inflation accelerated more than expected on higher food prices, rising at the fastest pace since the middle of 2023 and keeping the Bank of Japan on track to raise its benchmark interest rate further.
Consumer prices excluding fresh food rose 3.2% from a year earlier in January, the biggest gain since June 2023, according to the ministry of internal affairs Friday. The acceleration was slightly faster than expected, and was pushed up by higher processed food prices including a record 70.9% jump in the cost of rice, the country’s staple food.