Overview
- Tokyo inflation slowed in April, with core CPI at 1.5% and the core-core gauge at 1.9%, marking a third straight month below the Bank of Japan’s 2% target.
- Analysts say the weaker readings give the central bank room to wait after it kept rates steady at 0.75% and hinted a hike could come as soon as June.
- Fuel subsidies held down headline and core figures, and falling nursery fees and cooler goods prices added to the drag on the April data.
- Rising oil costs tied to Middle East tensions and a soft yen are expected to lift import prices, which many analysts think will push consumer inflation higher in coming months.
- A slow pace of rate increases since the BOJ ended its massive stimulus in 2024 has been blamed for keeping the yen weak, raising the cost of energy and other imports for households and firms.