Tadao Koike, owner of the rice shop, brought a bag of rice at his shop in Tokyo on February 14, 2025.
Yuichi Yamazaki |
Japan’s title inflation rose 3.7% in February, down 4% from its two-year high in January.
Core inflation (excluding fresh food prices) was 3%, down from 3.2% in January. However, economists’ expectations for Reuters’ report said the core inflation figure is higher, with an expectation of 2.9%.
Inflation data came shortly after the Bank of Japan kept interest rates stable.
The so-called “core” inflation rate lowered the prices of fresh food and energy and was closely monitored by BoJ, rising to 2.6% from 2.5% the previous month.
In its statement The central bank said that “basic CPI inflation is expected to increase gradually” and that it is “usually consistent” with the target of 2%.
BOJ said core inflation could increase in its fiscal year 2025 due to high rice prices and government measures to reduce inflation.
BOJ added that exchange rate developments are also more likely to affect prices, saying: “There is still high uncertainty surrounding economic activity and prices in Japan, including the evolving situation regarding trade and other policies in each jurisdiction.”
The amount of inflation also emerged in strong wages achieved by unions in Shangtu wage negotiations, which increased cases where the shed continued to normalize its monetary policy.
Japan’s largest union announced on March 14 that it managed to get average Salary increase by 5.46% Starting April – the biggest growth in thirty years.
The first-time table covering 760 unions increased by 0.18 percentage points from last year, the Japan Federation of Trade Unions, or Rengo, which has about 7 million members.
The average interest rate for small and medium-sized enterprises rose 5.09%, up 0.67 percentage points from last year, the first time since 1992 that such companies have surpassed 5%.
Ua Zensen, an umbrella group representing retail, restaurants and other unions, reportedly said 139 of its unions received Monthly wages increase by an average of 5.37% For full-time workers, it’s slightly below the 2024 record figure of 5.91%.
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