From Yahoo Finance: 2025-04-17 19:33:00

Japan’s core inflation rose in March due to increasing food costs, reaching 3.2%, exceeding the Bank of Japan’s 2% target for three years. Inflation, excluding fresh food and fuel costs, also accelerated to 2.9%. Rising prices for goods like gasoline and rice, along with Trump’s tariffs, could delay rate hikes and impact the economy.

BOJ Governor Kazuo Ueda stated that recent inflation was driven by higher food prices, with underlying inflation expected to reach 2%. However, uncertainty around Trump’s tariffs may affect the economy. Oxford Economics revised Japan’s GDP forecasts downward due to global trade disruption, prompting caution in policy rate hikes as growth prospects weaken.

Stubbornly high food prices and rising wages have kept consumer inflation above the BOJ’s target, leading to expectations of interest rate increases. However, Trump’s tariff plans and market fears of a global recession may hinder rate hikes. The yen’s rebound could ease inflationary pressure by moderating import costs.



Read more at Yahoo Finance: Japan’s core inflation accelerates, complicating BOJ’s rate path