Japan Core Inflation Rate

Japan's core consumer price index, which excludes fresh food but includes fuel costs, rose by 2.3% year-on-year in October 2024. This marked a slowdown for the second consecutive month, reaching the lowest level since April. However, the increase was slightly higher than the market forecast of 2.2%. Despite this, Japan's core inflation has consistently remained at or above the Bank of Japan's 2% target for over two years, which has contributed to the central bank’s more hawkish stance this year. In response to persistent inflation, the BOJ raised interest rates in March and July and has indicated a readiness to implement further hikes. BOJ Governor Kazuo Ueda stated this week that monetary policy decisions will be made on a meeting-by-meeting basis, depending on the available data. However, he also suggested the possibility of another rate increase as early as December, particularly in light of the recent weakness in the yen.