The data relating to inflation in Japan puts further pressure on Haruhiko Kuroda’s Bank of Japan, which surprised the markets this week by deciding to leave its monetary policy unchanged, focused on negative rates (-0.1%) and on control of the yield curve.
Japan’s core inflation as measured by the core consumer price index rose 4% year on year in December, posting the highest growth since December 1981, in line with expectations.
The core CPI strengthened from +3.7% the previous month, rising at twice the pace of the Bank of Japan’s inflation target of 2%. The figure also remained above the BoJ’s target for the ninth consecutive month.
The headline CPI index also grew on an annual basis by 4%, lower than the +4.4% estimated by economists, however accelerating the pace compared to the previous +3.8%.
On a monthly basis, Japan’s core consumer price index rose 0.2%.