MNI BRIEF: Japan March Core CPI Rises 2.6% Vs. Feb's 2.8%
Japanese CPI softened in March, but remained above the Bank of Japan's 2% price target.
The year-on-year rise of Japan's annual core consumer inflation rate decelerated to 2.6% in March from February’s 2.8%, showing the pass-through of cost increases is weakening, data released by the Ministry of Internal Affairs and Communications showed on Friday.
However, March’s index remained above the Bank of Japan’s 2% target for the 24th consecutive month.
The underlying inflation rate measured by the core-core CPI (excluding
fresh food and energy) rose 2.9% y/y in March, slowing from February’s 3.2%, its seventh straight deceleration.
Services prices, a key focus for the BOJ to gauge the strengthen of wages and prices, rose 2.1% y/y in March, slowing from 2.2% in February. (See MNI POLICY: April Services Data Key For Further BOJ Rate Move)
Japan’s core CPI rose 2.8% y/y in fiscal 2023, slowing from 3.0% in fiscal 2022.
The BOJ board next meets April 25-26.