Japan’s Inflation Slows Sharply on Subsidies Before BOJ Meet

The pace of Japan’s consumer inflation slowed abruptly on the back of government utility subsidies while remaining well above the Bank of Japan’s target hours before authorities are set to decide policy.

Consumer prices excluding fresh food rose 2.7% from a year earlier in August, slowing from a 3.1% gain in the previous month, the Ministry of Internal Affairs and Communications reported Friday. The slowest pace since November, it matched the median estimate of economists who predicted the resumption of subsidies to help households cope with record heat would exert a drag on the main gauge. The overall gauge slowed to 2.7% from 3.1%.