Core Inflation in Japan's Capital Slows in December but Stays Above BOJ Target

Core inflation in Japan's capital, Tokyo, slowed in December but remained above the Bank of Japan's (BOJ) target rate. According to data released by the BOJ, the core consumer price index (CPI) rose 0.7% in December, down from 1.1% in November ^[3].

The BOJ targets an annual core CPI inflation rate of 2%. The slowdown in inflation is a welcome development for the Japanese economy, which has been struggling with low growth and deflation for several years.

The BOJ has been implementing expansionary monetary policies to stimulate the economy and achieve its inflation target. The central bank has also been purchasing government bonds to inject liquidity into the market and keep long-term interest rates low.

The slowdown in core inflation is a positive sign for the Japanese economy, but it is still too early to say whether the BOJ's policies are working. The BOJ will continue to monitor inflation trends and adjust its policies as needed to achieve its target.

The Japanese government has also been implementing fiscal policies to stimulate the economy. The government has increased public spending and cut taxes to boost economic growth.

The slowdown in core inflation is a welcome development for the Japanese economy, but it is still too early to say whether the BOJ's policies are working. The BOJ will continue to monitor inflation trends and adjust its policies as needed to achieve its target.

Sources

[3] Core inflation in Japan’s capital slows in December but stays above BOJ target