Japan inflation eases to 3.7% in February, down from a two-year high

Japan inflation eases to 3.7% in February, down from a two-year high


The owner of rice shop Tadao Koike carries a bag of rice at his shop in Tokyo on February 14, 2025. 

Yuichi Yamazaki | Afp | Getty Images

Japan’s headline inflation rose 3.7% year on year in February, easing from a two-year high of 4% seen in January.

Core inflation — which excludes prices of fresh food — was at 3%, lower than January’s figure of 3.2%. However, the core inflation figure was higher with expectations of 2.9% from economists polled by Reuters.

The inflation figures come shortly after the Bank of Japan held interest rates steady.

The so called “core-core” inflation rate, which strips out prices of both fresh food and energy and is closely monitored by the BOJ, climbed to 2.6% from 2.5% in the month before.

In its statement, the central bank said that “underlying CPI inflation is expected to increase gradually” and be “generally consistent” with its target of 2%.

The BOJ said core inflation is likely to increase over its 2025 fiscal year, due to high rice prices and the easing of government measures to push down inflation.

Exchange rate developments are also more likely to affect prices, the BOJ added, saying “there remain high uncertainties surrounding Japan’s economic activity and prices, including the evolving situation regarding trade and other policies in each jurisdiction.”

The inflation numbers also came amid strong wage hikes achieved from unions in the shunto wage negotiations, boosting the case for the BOJ to continue normalizing its monetary policy.

Japan’s largest labor union announced on March 14 that it managed to secure an average 5.46% increase in wages from April — its largest increase in over three decades.

The Japanese Trade Union Confederation, or Rengo, which has around 7 million members, said that the first tabulation of the results covering 760 unions was 0.18 percentage points higher than last year’s increase of 5.28%.

Japan's domestic data 'on track' for BOJ to consider further tightening, says strategist

Small to medium-sized businesses saw an average rate rise of 5.09%, up 0.67 percentage points from last year and the first time since 1992 that the wage hikes for such companies crossed the 5% mark.

UA Zensen, an umbrella group representing retail, restaurant and other industry unions, reportedly said 139 of its member unions received an average increase of 5.37% in monthly wages for full-time workers, slightly less than 2024’s record figure of 5.91%.

This is breaking news, please check back for more updates.



Source

IBM is trying to rebound after results disappointed initially. What analysts and investors are saying
World

IBM is trying to rebound after results disappointed initially. What analysts and investors are saying

Analysts remain largely split on IBM ‘s future after the tech stalwart posted key metrics that flashed warning signs heading into 2026. While IBM reported a third-quarter earnings and revenue beat , analysts pointed to metrics below the surface headline beat that might indicate a worrisome near-term setup for the stock: namely, softness in IBM’s […]

Read More
The Beyond Meat fever highlights the risk of trying to ride the meme trade wave
World

The Beyond Meat fever highlights the risk of trying to ride the meme trade wave

The latest frenzy in Beyond Meat is offering a fresh reminder for investors chasing the latest viral stock — Riding the meme wave is fun, until it isn’t. The food company known for its plant-based burgers and sausages experienced monstrous gains of 128% Monday and 146% Tuesday. On Wednesday, the stock erased a triple-digit intraday […]

Read More
Kering shares pop as ‘sharp’ improvement at Gucci builds investor optimism
World

Kering shares pop as ‘sharp’ improvement at Gucci builds investor optimism

A woman wearing a Gucci belt and bag is seen during Paris Fashion Week in September 2018  Christian Vierig | Getty Images Shares of Gucci owner Kering closed up 8.7% on Thursday, hitting a 1-year high after the company’s sales decline narrowed and quarterly earnings beat estimates. The French luxury giant – whose brands include […]

Read More