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2026-02-20 07:50:34
[Japan's Core CPI Slows to 2% in January, Lowest in Two Years] Data released by Japan's Ministry of Internal Affairs and Communications on Friday showed that Japan's core consumer price index (CPI) rose 2.0% year-on-year in January, a significant slowdown from the previous month's 2.4%, marking the lowest growth rate in two years. This is the first time since April 2022 that Japan's inflation has failed to reach or exceed the 2% target, providing the Bank of Japan with more breathing room for its next policy action. Although central bank officials expect food price inflation to ease, a weaker yen could still push up import costs. Furthermore, Prime Minister Sanae Takaichi's plan to suspend the food and beverage consumption tax for two years could further complicate the inflation outlook: while tax cuts may lower prices in the short term, they could also stimulate consumption, leading to an overheated economy and ultimately exacerbating inflationary pressures.
