Japan's core inflation hits 3% in February, signaling potential interest rate hikes

From Yahoo Finance: 2025-03-20 19:34:00

Japan’s core inflation reached 3.0% in February, with an index excluding fuel rising at the fastest pace in nearly a year. The Bank of Japan Governor warned of rising food costs and strong wage growth, hinting at further interest rate hikes. The core CPI exceeded the BOJ’s 2% target for the 35th consecutive month. Inflation slowed slightly from the previous month due to fuel subsidies. Household expenses increased, with vegetable prices up 28% and rice up 81.4%. The BOJ may raise rates at the next meeting in May or July, depending on factors like U.S. tariffs and inflation trends.



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