Japan core inflation in February misses estimates, headline CPI eases for a fourth straight month
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The consumer price index fell to 1.3% last month, its lowest level since March 2022 and below the central bank's 2% target. It was down from 1.5% in January.
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Japan's headline inflation rate eased for a fourth straight month in February as the economy cooled on stabilizing food prices, though soaring energy prices risk pushing up living costs. The consumer price index fell to 1.3% last month, according to data released Tuesday, its lowest level since March 2022 and below the central bank's 2% target. It was down from 1.5% in January. Core inflation rate, which strips out fresh food prices, moderated to 1.6% in February, missing economists' forecast for 1.7% rise and compared with 2% rise in January. The so-called "core-core" inflation, excluding prices of fresh food and energy, came in at 2.5%, compared with 2.6% in January. The Bank of Japan has pegged its forecast for core inflation and "core-core" for fiscal 2026, which begins April 1, at 1.9% and 2.2%, respectively. The central bank has projected that year-on-year increase in consumer prices may fall below 2% in the first half of this year, due to government efforts to ease living costs and stabilize food prices. Prime Minister Sanae Takaichi had pledged to suspend an 8% food tax for two years during the election campaign. Last week, the BOJ held its interest rate steady at 0.75% as expected while cautioning upside risks to inflation stemming from the conflict in the Middle East, which has sent energy prices soaring. Japan's economy expanded just 0.1% year-on-year in the fourth quarter last year, narrowly avoiding a technical recession and slowing from 0.6% growth in the third quarter. This is breaking news. Please refresh for updates. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In ...
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