Japan’s core inflation rate rose to a 16-month high, adding to rising prices

Japan’s main inflation In December, the 16-month high increased by 3%, year-over-year, the increase in the rate of the Bank of Japan raised the issue.

This is in line with inflation expectations from economists polled by Reuters and is higher than the 2.7 percent rate of growth recorded in November.

December’s reading means the country’s core inflation has matched or run above the Bank of Japan’s 2% target for 33 months. Core inflation only costs Reading’s fresh food, but it also adds energy.

Inflation in Japan came in at 3.6%, up sharply from 2.9% in November and the highest since January 2023.

The reading comes ahead of the Bank of Japan’s policy meeting scheduled to conclude today. A strong inflation reading gives the BOJ more room to raise rates.

So-called “core-core” inflation, which cuts the prices of both fresh food and energy and is monitored by the BOJ, remained at 2.4%.

The yen weakened slightly to trade at 156.1 against the dollar immediately after the data was released.