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Japan's April Core Inflation Rate Falls Short of Expectations

Q: When was the last time core CPI was this low?

The core CPI at **1.4%** is the slowest recorded since March 2022.

Forexlive•May 22, 20261 min

In a Nutshell

Japan's core inflation rate for April 2023 stands at 1.4%, below the expected 1.7% and marking the slowest growth since March 2022. The overall Consumer Price Index (CPI) also reflects a decrease, indicating that the Bank of Japan may not feel pressured to raise interest rates in response to these figures.

Key Points

01The overall Consumer Price Index (CPI) for April was 1.4%, down from 1.5% in March.
02Core CPI, which excludes fresh food, also decreased to 1.4%, slower than the previous 1.8%.
03Core-core CPI, excluding fresh food and energy, registered at 1.9%, lower than the expected 2.2%.
04This inflation data suggests a lack of urgency for the Bank of Japan to raise interest rates.
05The current inflation rates are the slowest recorded since March 2022 for core CPI and July 2024 for core-core CPI.

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Full Summary

Japan's inflation data for April 2023 reveals a core inflation rate of 1.4%, which is below the anticipated 1.7% and represents the slowest growth since March 2022. The overall Consumer Price Index (CPI) also decreased from 1.5% in March to 1.4% in April. Additionally, the core-core...

Key Figures

1.4%

April core inflation rate

1.7%

Expected core inflation rate

1.9%

Core-core CPI excluding fresh food and energy

2.2%

Expected core-core CPI

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Why It Matters

The lower inflation rates may influence consumer spending and economic growth in Japan.

Who is affected

Consumers and businesses in Japan.

What to know

Businesses should monitor inflation trends to adjust pricing strategies accordingly.

FAQ

The core inflation rate is significant as it reflects the long-term trend in prices by excluding volatile items like fresh food and energy. It helps policymakers, like the Bank of Japan, gauge underlying inflation pressures.

The core CPI at 1.4% is the slowest recorded since March 2022.

Bank of Japan

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