Reported 10 months ago
Japan's core inflation increased in May due to energy levies, but a slowdown in the index excluding fuel raises doubts on the Bank of Japan's decision to raise interest rates. The core consumer price index rose 2.5% year-on-year, driven by a renewable energy levy. However, the index excluding volatile items slowed to 2.1% from 2.4% in April, marking the lowest increase since September 2022. This challenges the BOJ's view that wage hikes will boost consumption and sustain inflation target. Analysts anticipate inflation pressures from rising material costs but note weak real wage growth and cautious firms may delay rate hikes as consumption remains a concern.
Source: YAHOO