MONEY MASTER

  Japan's core consumer inflation rose for the fourth straight month in August, exceeding the Bank of Japan's (BOJ) 2% target and raising expectations of further interest rate hikes. The core consumer price index (CPI) , which excludes fresh food costs, increased 2.8% from a year earlier, following a 2.7% rise in July. This data comes just ahead of the BOJ's policy meeting conclusion, where the central bank is widely expected to keep interest rates steady at 0.25% . A separate index that strips away both fresh food and fuel costs , seen as a more precise measure of demand-driven inflation by the BOJ, rose 2.0% in August, up from 1.9% in July. Economists like Marcel Thieliant , head of Asia-Pacific at Capital Economics, suggest that underlying inflation will likely remain around 2% over the coming months, potentially prompting another rate hike by the BOJ at its October meeting . The BOJ ended negative interest rates in March and raised short-term rates to 0.25% i...

  Japan's core inflation accelerated for the third consecutive month in July, with the nationwide core consumer price index (CPI) excluding fresh food items rising 2.7% year-on-year, slightly above the 2.6% increase in June. This marks the 28th straight month that inflation has remained at or above the Bank of Japan's (BOJ) 2% target. However, the slowdown in demand-driven price growth, reflected in the "core core" index, which excludes both fresh food and energy costs, dropped to 1.9%, complicating the BOJ's decision-making process regarding further interest rate hikes. Key Takeaways: Inflation Dynamics and Central Bank Challenges : The core CPI's increase is largely attributed to the phasing out of government subsidies that had been keeping household utility bills lower. However, the slowdown in the "core core" inflation suggests that demand-driven price pressures are easing. This presents a challenge for the BOJ as it balances the need to sustain ...