Japan's Consumer Inflation Remains Above Central Bank Target for 44th Month

Japan's Consumer Inflation Stays Above Central Bank Target

Japan's consumer inflation has remained above the central bank's target for the 44th consecutive month, according to data released on December 19, 2025. This development has strengthened the case for a rate hike by the Bank of Japan (BOJ).

Core Inflation Remains Unchanged

Core inflation, which strips out prices of fresh food, remained unchanged from 3% in October. This figure aligns with the average estimate of economists polled by Reuters.

BOJ Target

The BOJ's target inflation rate is 2%. The prolonged period of inflation above this target has sparked concerns about the potential impact on the economy. A rate hike could help to curb inflation and maintain price stability.

Impact on Economy

The prolonged period of inflation above the target has significant implications for the Japanese economy. A rate hike could lead to higher borrowing costs, which may impact consumer spending and economic growth.

BOJ's Next Move

The BOJ's decision on interest rates will be closely watched by investors and economists. A rate hike would be a significant move, and its impact on the economy will be closely monitored.

Conclusion

Japan's consumer inflation has remained above the central bank's target for the 44th consecutive month. This development has strengthened the case for a rate hike by the BOJ. The impact of a rate hike on the economy will be closely monitored.

Sources

[1] Japan's consumer inflation stays above cenbank's target for 44th month, boosting case for a rate hike
[2] Japan’s core inflation steady in November, stays above BOJ target
[3] Trump signs order to ease US marijuana regulations, sparking industry hopes