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Inflation in Japan continues to exceed central bank targets in the third month | Business and Economy

The Bank of Japan maintains ultra-low interest rates, despite global peers tightening policies to cool inflation.

Japan’s core consumer inflation remained above the central bank’s 2% target for the third straight month in June as the economy faced pressure from rising global raw material prices that pushed up national import costs.

Rising consumer prices disagree with the Bank of Japan’s view that recent price increases in the world’s third-largest economy are somewhat temporary, even though households are concerned about rising living costs. I am.

According to government data, the National Core Consumer Price Index (CPI) in June rose 2.2% year-on-year, excluding the cost of volatile fresh food and including the cost of energy.

Data consistent with the median market forecast meant that inflation exceeded the BOJ’s 2% target for the third straight month. It followed a 2.1 percent rise in May and April.

Core core CPI, which eliminates both volatile food and fuel costs, rose 1% year-on-year in June, the sharpest rise since February 2016.

Rising fuel and food prices and Russia’s invasion of Ukraine Rapid depreciation of the yen, which is inflating import costsJapan’s core consumer inflation is expected to exceed the BOJ’s target for most of the year, analysts said.

However, slowing wage growth and slow recovery in consumption have discouraged Japanese companies from rising prices, so the overall pace of inflation in Japan is still well below the sharp rise in the US and European economies. I am.

Inflation rates in 19 countries that share the euro currency have exceeded a record high of 8%. Inflation in Britain was the highest in 40 years last month.

The Bank of Japan raised its core consumer inflation forecast for the year, ending March 2023, from 1.9% to 2.3% on Thursday, but very low, even if many of its peers around the world tightened their policies significantly. Maintained interest rates. Try to cool the price pressure.

https://www.aljazeera.com/economy/2022/7/22/japans-inflation-stays-above-central-bank-target-for-3rd-month Inflation in Japan continues to exceed central bank targets in the third month | Business and Economy

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