Japanese Inflation Slows in April, But Remains Above Target
In April, Japanese inflation slowed to 2.2 percent due to decreasing gas bills, according to government data. This figure, although lower than March’s 2.6 percent rise, still surpasses the Bank of Japan’s two percent target. The weak yen continues to inflate prices for imported goods in Japan, contributing to the overall inflation rate.
While other major economies have faced high inflation rates in recent years, Japan’s inflation has been more moderate. The Bank of Japan has implemented ultra-loose monetary stimulus policies to stimulate sustainable inflation of two percent and combat stagnation and deflation in the economy.
In March, the BoJ raised borrowing costs for the first time since 2007 after meeting its inflation target. The weakening yen has benefits for Japanese exporters but makes imports and foreign travel more expensive for outbound tourists.
Despite the challenges, Japan remains focused on maintaining steady economic growth and managing inflation effectively in the global market.