Japanese inflation slowed to 2.2 percent in April due to falling gas bills, remaining above the Bank of Japan’s target. The Consumer Price Index excluding fresh food prices eased from 2.6 percent in March, in line with market expectations. The weak yen continues to inflate prices for imported goods, while Japan has seen less extreme inflation compared to other major economies.
The Bank of Japan’s ultra-loose monetary policies aim to sustain two percent inflation. In March, the BOJ raised borrowing costs for the first time since 2007. The yen hit three-decade lows against the dollar, benefiting exporters but making imports costly. Foreign travel for outbound tourists also becomes expensive.
Despite global pressure on the yen, Japanese inflation remains steady, with prices rising by 2.4 percent in April when excluding food and energy. The BOJ’s efforts to combat stagnation and deflation have kept inflation in check, but challenges persist in balancing economic growth and foreign exchange rates.
© 2024 AFP