Consumer inflation advanced apace last month, supporting the Bank of Japan’s stance on a gradual rate hike path before U.S. tariff measures clouded the economic outlook.
Consumer prices, excluding fresh food, rose 3.2% from a year ago in March, accelerating from a 3% increase in the previous month, the internal affairs ministry said Friday. That matched the median estimate of economists surveyed by Bloomberg. A gauge of underlying inflation that also excludes energy prices rose 2.9%, as expected. That’s the fastest since March of last year.
Friday’s data are likely to keep BOJ officials confident in their rate-hike posture as overall inflation has stayed above their 2% target almost for three years. Gov. Kazuo Ueda has maintained his stance of intending to raise rates given price trends, while also citing the need to closely watch how U.S. tariff measures evolve.