Japan's Inflation Cools Despite Improving Growth, Leaving BoJ In No Rush To Tighten

2026-02-27 01:10:00 ET

By Mi n Joo Kang , Senior Economist, South Korea and Japan

Core inflation continued to cool, falling below the BoJ’s target

Japan’s core inflation, excluding fresh food, eased to 1.8% year-on-year in February (vs 2.0% in January, 1.7% market consensus). Government energy subsidy measures drove inflation lower quite meaningfully. Utility prices, such as electricity and gas, fell further by 6.6% in February compared to -2.2% in January. Cereal prices (mostly rice) grew notably less, from 11.3% in January to 7.5%. The high base for rice prices will continue to weigh on inflation throughout this year. Energy subsidies will end soon, so we expect temporary volatility in monthly changes. Yet, other government welfare programs, such as free tuition, are likely to lower inflation in the latter part of the year....

Read the full article on Seeking Alpha

For further details see: