Japan Inflation Hits 1.8%: Energy Costs Drive Highest Rate This Year

Japan’s core inflation rate rose to 1.8% in the latest reading, marking the highest level this year, according to official data released on Friday. The figure, which excludes volatile fresh food prices but includes energy costs, matched economists’ forecasts exactly. The primary driver behind the increase was higher energy prices, which have pushed up costs for households and businesses across the country. Core inflation remains below the Bank of Japan’s 2% target, a key factor as the central bank weighs future interest rate decisions. Analysts note that while the rise is notable, it does not signal a major shift in Japan’s long-standing battle with weak price growth.