The Ministry of Internal Affairs said JapanThe core consumer price index fell from 2.8 percent in August to 2.4 in September, with the pace of increases in electricity and gas prices slowing.
Despite the slowdown, inflation remains above target Central Bank of Japan The 2 percent rate, which was set more than a decade ago as part of efforts to boost the sluggish economy.
And transcend Inflation Targeted Bank of Japan In all previous months since April 2022, despite the Bank of Japan’s doubts about the extent to which this is related to temporary factors such as the Ukraine war and supply chain disruptions due to the Corona epidemic.
“The resumption of government subsidies for electricity led to a significant decline in headline inflation in September,” said Marcel Thiliant, head of the Asia-Pacific division at Capital Economics, according to Agence France-Presse.
Thiliant expects a further slowdown in… Core inflation in October, but noted that “subsidies are likely to be removed completely by December, which could lead to inflation rising again.”
Rifaat Japan Prices Interest in March for the first time since 2007 and then again in July, in initial steps towards normalizing its ultra-loose monetary policies.
New Prime Minister Shigeru Ishiba said this month that the environment was not right for raising interest rates again.
After Ishiba took office in early October, expectations that he favored higher borrowing costs and the possibility of new taxes led to a rise in the yen and stock market volatility.
The price of the dollar reached 150 yen in early Friday trading, after the Japanese currency weakened from levels around 149.35 the previous day.
Inflation (consumer price index) rose 2.1 percent in September, excluding fresh food and energy.
“We expect inflation, excluding fresh food and energy, to remain at 2 percent until early next year, when it should gradually fall below 2 percent,” Thiliant said.
“Based on this, we still expect the BOJ to go ahead with another rate hike before the end of the year,” he added.
