Japan’s core inflation made a sharp decline in November at a pace not seen in more than a year, according to the data published on Friday.
The core consumer price index (CPI) of Japan, which excludes volatile fresh food but includes fuel costs, rose 2.5% in November from the same period of last year. The reading was inline with economist forecasts and down from 2.9% in October.
This highlights an easing of cost-push pressure that could support the Bank of Japan’s ultra-low interest rate policy for longer.
However, minutes of the Bank of Japan meeting in October that was published earlier today showed that policymakers were discussing a shift in yield control policy. This gives a signal that a shift in policy rate to a positive territory is not far off.
