Japan’s inflation rose by 3.6% year-on-year in March, marking the third consecutive year it has exceeded the Bank of Japan’s 2% target. The core-core inflation rate, excluding fresh food and energy prices, increased to 2.9% from 2.6% the previous month. Core inflation, which excludes fresh food prices, was reported at 3.2%, aligning with Reuters’ expectations. Although the US has suspended its 24% reciprocal tariffs on Japan for 90 days, leaving a baseline tariff of 10%, the looming tariffs could pressure Japan’s GDP and limit the BOJ’s ability to raise interest rates. Nomura analysts have revised their outlook, expecting only one rate hike by the BOJ in January 2026.
— new from CNBC
