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Business

Japan's Core Inflation Edges Up for First Time Since March

Japan's core inflation rate rose in June for the first time in three months, according to official data released Friday. The consumer price index, excluding fresh food, increased 1.6% from a year earlier, matching economists' expectations. This marks an uptick from May's 1.5% rise, which was the slowest in nearly four years. The modest acceleration was driven largely by higher energy costs, as oil prices have climbed recently. Core inflation, a key measure watched by the Bank of Japan, had been hovering near multi-year lows. The central bank has kept monetary policy ultra-loose for years to stimulate the economy and push inflation toward its 2% target. However, price pressures remain subdued due to weak domestic demand and slow wage growth. The latest data suggest that rising import costs from higher oil prices are beginning to filter through, but the overall inflation picture remains muted. Analysts expect the Bank of Japan to maintain its accommodative stance in the near term, as the global economic outlook remains uncertain. The June reading provides some relief but does not signal a sustained upward trend in prices.

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