Tokyo consumer price index inflation grew at its slowest pace in four years in March amid continued government efforts to keep food and utility prices stable, with core inflation also cooling.
Headline CPI rose 1.4% in March, government data showed on Tuesday. The print slowed from the 1.5% rise seen in February, and was the softest CPI reading since March 2022.
Core CPI, which excludes volatile fresh food prices, grew 1.7% in March, slower than expectations that it would remain steady at 1.8%. The print fell further below the Bank of Japan’s annual 2% target.
A core reading that excludes both fresh food and energy costs grew 2.3% in March, slowing from the 2.5% rise seen in the prior month. The print is used as a key gauge of underlying inflation by the BOJ, and grew at its slowest pace in 13 months.
Japanese inflation has steadily cooled in recent months amid continued measures by the Sanae Takaichi government to rein in utility and food prices. The government is expected to continue these measures in the near-term, especially in the face of energy price shocks stemming from the war in the Middle East.
But the BOJ expects inflation to pick up later this year as the effects of government subsidies are baked into the economy, and as wages increase further. The central bank has flagged more interest rate hikes in the coming months as inflation picks up.
source https://www.investing.com/news/economic-indicators/tokyo-cpi-inflation-hits-fouryear-low-in-march-4589066
