Japan core inflation stays below target
The annual core inflation in Japan remained below the Bank of Japan's 2% target for the fourth consecutive month in May, with the index rising to 1.4% year-on-year. Meanwhile, the index excluding food and fuel increased to 1.8%. Analysts expect inflation to accelerate soon, potentially prompting the central bank to raise interest rates after previously increasing them to the highest level in 31 years to address cost pressures stemming from the energy shock.
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