Japan’s core consumer inflation eased slightly in May but remained above the Bank of Japan’s 2% target for the 25th consecutive month.
Japan’s core consumer price index, excluding one-off factors, rose 2.7% in May from a year earlier, down from April’s 2.8% increase. The figure marks a slight deceleration but continues to exceed the Bank of Japan’s 2% inflation target for over two years.
The central bank’s new gauge, which strips out volatile items, has hovered above target since early 2022. April’s print had matched market expectations, while May’s reading suggests persistent price pressures despite easing energy costs.
Markets are closely watching the BoJ’s next policy moves as inflation remains elevated amid a fragile economic recovery.