Japan’s headline inflation rate eased for a fourth straight month in February as the economy cooled on stabilizing food prices, though soaring energy prices risk pushing up living costs.
The consumer price index fell to 1.3% last month, according to data released by the Ministry of Internal Affairs and Communications on Tuesday, its lowest level since March 2022 and below the central bank’s 2% target. It was down from 1.5% in January.
Core inflation rate, which strips out fresh food prices, moderated to 1.6% in February, missing economists’ forecast for 1.7% rise and compared with 2% rise in January.
The so-called “core-core” inflation, excluding prices of fresh food and energy, came in at 2.5%, compared with 2.6% in January.
The Bank of Japan has pegged its forecast for core inflation and “core-core” for fiscal 2026, which begins April 1, at 1.9% and 2.2%, respectively.
