Japan's Inflation Has Been Above Target for over 3 Years, but Where Is the BOJ?
- Japan's inflation has remained above target for over three years, but the Bank of Japan considers the inflation spike temporary and will not alter its policy rate.
- Kazuo Ueda, BOJ Governor, stated that rising import costs and rice prices mainly drive consumer inflation around 3%.
- Yujiro Goto from Nomura indicated that food inflation is primarily due to supply issues rather than strong demand.
- Frederic Neumann from HSBC noted that the BOJ has faced long-term deflationary pressures and several episodes of false dawns that prompted premature tightening.
12 Articles
12 Articles
Japan’s Retail Sales Growth Slows in May: A Year-over-Year Decline to 2.2%
Japan's retail sector witnessed a notable slowdown in growth in May 2025, as the latest data released on June 26th indicates. Retail sales experienced a year-over-year increase of just 2.2%, a marked decrease from the 3.5% growth rate observed in April 2025. This deceleration signals potential challenges for Japan’s consumer market amidst broader economic conditions.The shift suggests that while Japanese retailers experienced a relatively robust…
Japan’s corporate service inflation hits 3.3% in May
TOKYO :A leading indicator of Japan’s service-sector inflation hit 3.3 per cent in May, data showed on Wednesday, keeping alive expectations of further interest rate hikes by the central bank. Service-sector inflation is being closely watched by the Bank of Japan for clues on whether prospects of sustained wage gains will prod firms to continue raising prices, and keep inflation sustainably around its 2 per cent target. The May year-on-year gain…
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- 50% of the sources lean Left
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