Slower Tokyo core inflation no bar to further BOJ hikesReuters, TOKYOCore consumer inflation in Japan’s capital slowed in December with moderating cost pressure for food but stayed above the central bank’s 2 percent target, data showed yesterday, firming the case for further interest rate hikes. Some analysts warn of risk that renewed yen declines could prod firms to keep raising prices, leading to sticky, cost-led inflation that could quicken the pace of BOJ rate hikes. Photo: EPA“Today’s data suggests food inflation may be peaking. “The pace and timing of BOJ rate hikes will depend much on how the yen moves and how they affect firms’ price-setting behavior,” he said. With core inflation exceeding the BOJ’s target for about four years, Governor Kazuo Ueda has signaled the BOJ’s readiness to keep raising rates if the economy continues to improve, backed by solid wage gains.

Source: Taipei Times December 26, 2025 16:34 UTC