Friday, December 27, 2024
HomeWorld NewsJapan's inflation rate fell in October, Bank of Japan still considering raising...

Japan’s inflation rate fell in October, Bank of Japan still considering raising interest rates | Real Time Headlines

June 2023, a market in Tokyo.

Richard A. Brooks | AFP | Getty Images

Japan’s overall inflation rate fell to 2.3% in October, the lowest level since January, down from 2.5% in September.

Core inflation, excluding fresh food prices, was 2.3%, down from 2.4% in September. However, the figure was slightly higher than the 2.2% expected by economists polled by Reuters.

The Bank of Japan has long stated that its goal is to “A virtuous cycle between wages and prices.Therefore, weak inflation data may mean that the central bank still needs to maintain an accommodative monetary policy stance.

Another measure of inflation, known as “core-to-core” inflation, which excludes fresh food and energy prices, rose to 2.3%, up from 2.1% in September. The Bank of Japan also tracks this indicator.

LSEG data shows that as of November 22, 55% of economists surveyed by Reuters expected the Bank of Japan to raise interest rates by 25 basis points at the December meeting, which would bring the benchmark policy rate to 0.5%.

On November 18, Bank of Japan Governor Kazuo Ueda explain According to Reuters, the economy is heading towards sustained wage-driven inflation and it warned against keeping borrowing costs too low.

The Bank of Japan also stated in its latest report that Summary of comments If prices and the Japanese economy develop as expected, the policy rate could reach 1% as soon as the second half of fiscal 2025.

RELATED ARTICLES

Most Popular

Recent Comments