TechFlow news, on February 12, according to Jinshi Data, data released earlier today showed that Japan's core consumer inflation accelerated in January, rising 3.2% year-on-year—the fastest pace in 19 months.
The stronger-than-expected increase reinforced expectations that the Bank of Japan may continue raising interest rates as inflationary pressures persist. The price rise appears consistent with the central bank's forecasts. Analysts noted that service-sector inflation did not accelerate, increasing 1.4% year-on-year in January compared to 1.6% in December, though overall goods inflation has not slowed.
For nearly three years, Japan's inflation rate has remained above the central bank's 2% target, prompting a shift in monetary policy. Bank of Japan Governor Kazuo Ueda previously indicated that the central bank could further raise interest rates if wage growth continues to support consumption, enabling firms to raise wages and sustain higher prices.
