Japan's Core Consumer Inflation Reaches 19-Month High In January

According to BlockBeats, Japan's core consumer inflation accelerated in January, reaching 3.2% year-on-year, marking the fastest pace in 19 months. This stronger-than-expected growth has reinforced expectations that the Bank of Japan may continue to raise interest rates as inflationary pressures persist. The rise in prices aligns with the central bank's forecasts. Analysts noted that while inflation in the services sector did not accelerate, increasing by 1.4% year-on-year in January compared to 1.6% in December, overall goods inflation has not slowed. For nearly three years, Japan's inflation rate has remained above the central bank's 2% target, prompting a shift in monetary policy. Bank of Japan Governor Kazuo Ueda previously indicated that if wage growth continues to support consumption, enabling companies to raise wages and maintain price increases, the central bank might further increase interest rates.