While the United States and other major economies have battled sky-high inflation in recent years, price rises in Japan have been less extremeThe pace of Japanese inflation accelerated in May partly due to higher energy bills, government data showed Friday, as analysts speculate on the timing of the Bank of Japan's next rate hike. The Consumer Price Index (CPI) -- which excludes volatile fresh food prices -- rose 2.5 percent year-on-year, compared with the 2.2 percent logged in April by the internal affairs ministry. While the United States and other major economies have battled sky-high inflation in recent years, price rises in Japan have been less extreme. The Bank of Japan is targeting sustainable, demand-driven inflation of two percent. Excluding fresh food and energy, Japanese prices rose 2.1 percent in May, against market expectations of 2.2 percent and following a 2.4 percent rise in April, Friday's data showed.
