Japan’s Inflation Surges Above BOJ Target for Third Year Running

Japan’s consumer price index (CPI) rose 3.6% year-on-year in March, exceeding the Bank of Japan’s (BOJ) expectations and marking three consecutive years of inflation surpassing its target. While this marks a drop from February’s 3.7%, core inflation—excluding fresh food and energy—increased to 3.2% YoY, up from 3%. This rise is attributed to persistent increases in food costs, posing a challenge for the BOJ to balance escalating price pressures with potential economic risks from rising U.S. tariffs.