MNI BRIEF: Japan Trimmed Mean Inflation Rises To 2.9% - BOJ

Japan's trimmed mean underlying inflation accelerated to +2.9% y/y in March, up from February's 2.7% as cost increase pass-throughs continue, data released by the Bank of Japan on Tuesday showed.

The acceleration in the trimmed mean comes as recent data showed Japan's annual core consumer inflation rate rose 3.1% y/y in March, unchanged from February’s 3.1%.

Tuesday's data showed the mode rate, the inflation rate with the highest distribution density, rose a record high of 2.7% y/y, accelerating from a 2.1% previously. The mode-based measure of underlying inflation was above the BOJ's 2% price target for the second straight month.

The BOJ still sees core CPI falling below 2% y/y in the middle of fiscal 2023, thus requiring continued easy policy to support the economy and to create an environment for firms to raise wages. The board’s median forecasts for core inflation rate in fiscal 2023 and 2024 are +1.6% and +1.8%, respectively.