TOKYO: Japan's core inflation slowed in March and an index gauging broader price trends fell below 3 per cent for the first time in over a year, data showed on Friday (Aug 19), as analysts say yen weakness could complicate the central bank's policy deliberations.
A view of a vegetable stand with prices at a supermarket in Tokyo, Japan , on Mar 24, 2023. TOKYO: Japan 's core inflation slowed in March and an index gauging broader price trends fell below 3 per cent for the first time in over a year, data showed on Friday , as analysts say yen weakness could complicate the central bank's policy deliberations.
Meanwhile, a gauge of price gains that excludes fresh food and energy costs and is closely watched by the Bank of Japan moderated to 2.9 per cent after increasing 3.2 per cent in February. It was the first time since November 2022 that the index fell below 3 per cent. "It is within the BOJ's expectations that the growth rate of prices of goods will slow down," said Masato Koike, economist at Sompo Institute Plus."Rather, what is unexpected is the yen's depreciation or the rise in crude oil prices" due to tensions in the Middle East.
While Japanese companies offered their biggest wage hikes in 33 years this year, inflation-adjusted real wages have continued to fall for nearly two years.
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