Japan’s annual inflation slowed to 1.4% in April, with core CPI undershooting expectations at 1.7%.
Japan’s annual consumer price inflation eased to 1.4% in April from 1.5% in March, matching the slowest pace in over a year. The core CPI, which excludes fresh food but includes energy, rose 1.4% year-on-year, down from 1.8% in the prior month and below the 1.7% consensus forecast.
The decline marks a continued retreat from the 40-year highs seen in 2025, as energy and food price pressures moderate. Analysts had anticipated a smaller drop, signaling potential weakness in domestic demand.
Markets are assessing the implications for the Bank of Japan’s policy outlook, with inflation now well below its 2% target.