In March, Japan observed a subtle cooling in core inflation, though levels persistently exceed BoJ’s target.
Core CPI, which excludes food prices, slowed from 2.8% yoy to 2.6% yoy, slightly under the expectation of 2.7% yoy, marking a continued stretch above BoJ’s 2% target for two full years.
Further detail is seen in the core-core CPI, excluding both food and energy, which decreased from 3.2% yoy to 2.9% yoy. This marks the seventh consecutive month of deceleration and brings this measure below 3% level for the first time since November 2022.
Meanwhile, headline CPI dipped slightly from 2.8% year-on-year to 2.7%, aligning with analysts’ forecasts.
