Japan's core consumer price index, which excludes fresh food but includes fuel, increased by 2.7% year-on-year in November 2024, exceeding market forecasts of a 2.6% rise.
Japan core inflation tops forecast in November
This represents the highest core inflation rate in three months, following increases of 2.4% in September and 2.3% in October. Core inflation has remained at or above the Bank of Japan's 2% target for nearly two and a half years, contributing to the central bank's more hawkish approach this year. In response to persistent inflationary pressures, the Bank of Japan raised interest rates in March and July and has indicated the possibility of further hikes.
BoJ kept rates unchanged
However, during its December meeting, the central bank opted to keep rates steady, citing the need to monitor wage growth, uncertainties in the global economy, and the potential impact of policies under the incoming US administration.
