Japan’s Inflation Holds Steady at 3% Ahead of BOJ Meeting
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oo6)uer95dlkfod33tr11v[]_media_dl_1.png Japan's ministry of internal affArticle content(Bloomberg) — Japan’s key inflation gauge stayed at 3% for a second month, signaling sustained price pressure hours before the Bank of Japan is widely expected to boost borrowing costs for the first time since January.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentConsumer prices excluding fresh food rose 3% from a year earlier in November, with the pace of gains unchanged from the previous month, the Ministry of Internal Affairs and Communications reported Friday. The reading matched the median estimate of economists. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe overall gauge matched analyst forecasts of 2.9%, while a deeper measure that strips out energy rose 3%, slightly decelerating from the previous month.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe data came hours before the central bank is expected to raise its benchmark interest rate to 0.75%, the highest in 30 years, as predicted by all 50 economists surveyed by Bloomberg. Friday’s figures will likely keep investors focused on the pace of any subsequent interest rate hikes in 2026, as the central bank continues to nudge policy toward neutral settings. Article contentThe core gauge has now stayed at or above the BOJ’s 2% inflation target for 44 consecutive months. Overall price gains were supported by energy price rises, which picked up after utility subsidies were cut back. Article contentPersistent price gains are a concern for Prime Minister Sanae Takaichi. Her ruling Liberal Democratic Party sustained setbacks in two national elections before she became premier, amid simmering frustration with soaring costs of living.Article contentTo address the situation, Takaichi has put together price-relief measures that include winter electricity subsidies and one-off cash handouts for children as part of her economic package.Article contentArticle contentThe number of price increases by Japan’s major food companies is set to reach 20,609 this year, rising 64.6% from the previous year, Teikoku Databank reported last month.Article contentWhat Bloomberg Economics Says…Article content“With core inflation gauges around 3% — above the Bank of Japan’s 2% target — the reading would bolster the BOJ’s confidence that price growth is persistent enough to justify lifting its policy rate to 0.75% from 0.5%, likely later today.”Article content— Taro Kimura, economistArticle contentClick here to read the full reportArticle contentMarket participants will be focused later Friday on comments by BOJ Governor Kazuo Ueda when he speaks at a post-decision press briefing likely to start at 3:30 p.m. in Tokyo. Any remarks suggesting concern about the stickiness of inflation may shed light on how fast the bank may continue to lift rates next year.Article contentUeda may seek to reassure households that price gains will moderate. In its latest outlook report released in October, the BOJ projected that key inflation measures will slide below 2% through the first half of the fiscal year starting in April, as food inflation is likely to ease. Article contentSo far, food and beverage companies have indicated they plan to lift prices on 1,050 products next year. At the same juncture a year ago, the firms projected increases for roughly 4,400 items in 2025, according to Teikoku Databank.Article content(Updates with more details from report.)Article contentTrending Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Mortgage rates move — but in the wrong direction Mortgage Rates Amid a wave of mortgage renewals, borrowers will have leverage in 2026 Mortgages Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Mortgage rates move — but in the wrong direction Mortgage Rates Amid a wave of mortgage renewals, borrowers will have leverage in 2026 Mortgages Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy