The Bank of Japan is expected to raise rates by 25 basis points later in the day as it concludes its monetary policy meeting.
The 3% reading in December is the highest inflation rate since August 2023, and boosts the case for a rate hike from the Bank of Japan.
The headline inflation rate in Japan came in at 3.6%, accelerating sharply from the 2.9% in November and hitting its highest level since January 2023.rose to a 16-month high at 3% in December, year on year, boosting the case for a rate hike from the Bank of Japan. This was in line with inflation expectations from economists polled by Reuters, and higher than the 2.7% growth in prices recorded in November.The December reading means that core inflation in the country has matched or ran above the Bank of Japan's 2% target for 33 months in a row. The core inflation reading strips out only prices of fresh food, but includes energy.
The headline inflation rate in Japan came in at 3.6%, accelerating sharply from the 2.9% in November and hitting its highest level since January 2023.The reading comes amid the Bank of Japan's policy meeting, which is set to conclude today. A strong inflation reading offers the BOJ more room to raise rates.
The so called"core-core" inflation rate, which strips out prices of both fresh food and energy and is tracked by the BOJ, held steady at 2.4%.Bank of Japan is expected to hike rates this week, CNBC survey shows
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