MNI BRIEF: Japan's Trimmed Mean Slows To 2.7% - BOJ
Japan recorded a trimmed mean measure of underlying inflation of 2.7% y/y in February, slowing from 3.1% in January, according to the Bank of Japan (BOJ) data released Tuesday.
The figures indicate slowing cost increases and follows data released on Friday that showed Japan's annual core consumer inflation rate in February declined to 3.1% y/y from January’s 4.2% – the highest level since September 1981.
The BOJ's latest data showed the mode – or the inflation rate with the highest density in the distribution – rose a record 2.1% y/y in February, accelerating from a 1.6% rise in January. The mode-based measure, however, is below the BOJ's 2% target.
The central bank expects the y/y rise in core CPI will fall below 2% in the middle of fiscal 2023 and will require continued easing to support the economy and encourage wage increases.
The board’s median forecasts for core inflation rate in fiscal 2023 and 2024 are 1.6% and 1.8%.