Japan: Core inflation unchanged again in January
In January, the core consumer price index rose 0.2% compared to the previous month in seasonally-adjusted terms, following December’s 0.1% increase.
Core inflation came in at 0.9% in January, matching the result in the previous two months, which represented the joint-highest reading since March 2015. The print was in line with market analysts’ expectations. Overall inflation increased from 1.0% in December to 1.4% in January, the highest reading in nearly three years.
With oil prices moderating the pace of rise, a government official stated that inflation is, “expected to be flat in the coming months”. Subdued inflation pressures will likely force the Bank of Japan to keep its ultra-loose monetary policy unchanged for the foreseeable future.