Japan’s core inflation accelerated in March due to persistent rises in food costs, data showed on Friday, complicating the central bank’s task of weighing mounting price pressures against risks to the economy from higher U.S. tariffs.
The data comes ahead of the Bank of Japan’s policy meeting next week, when the central bank is set to keep interest rates steady at 0.5% and cut its growth estimates as U.S. President Donald Trump’s steep tariffs cloud the economic outlook.
The core consumer price index (CPI), which includes oil products but excludes fresh food prices, rose 3.2% in March from a year earlier, government data showed, matching a median market forecast and accelerating from a 3% gain in February.
Core inflation has now exceeded the BOJ’s 2% target every month for three years in a row, in a sign of mounting price pressure as companies continue to pass on rising raw material and labour costs.