Asien: Japans Kerninflation bleibt stabil – Notenbank vor Zinserhöhung

Tokyo – Japan's core inflation has remained steady at the Bank of Japan's (BoJ) two percent target, according to official figures from August, indicating the likelihood of an imminent interest rate increase. The core consumer price index, which excludes volatile prices for fresh food but includes energy costs, increased by 1.7 percent year-over-year, as released on Friday.

Analysts had predicted a 1.8 percent rise, with the same growth occurring in July. Another index, which omits fresh food and fuel costs and is considered more reliable by the BoJ to gauge demand, rose by 1.9 percent. The data was released just hours before the conclusion of the BoJ's two-day interest rate session on Friday. It is widely anticipated that the currency guardians will lift the benchmark rate to a 31-year high of 1.25 percent.

Core inflation has been below the BoJ's two percent target for eight consecutive months, primarily due to government subsidies to curb energy costs, which offset price increases across a wide range of goods. However, rising fuel costs due to the Middle East conflict and higher import prices stemming from the weak yen have intensified the pressure on prices.