Core inflation still elevated"Inflationary pressures are more entrenched than the weak headline result for February would suggest," said Abhijit Surya, senior Apac economist at Capital Economics. "Indeed, we believe that the Bank of Japan's preferred measure of core inflation will remain above its 2% target for the foreseeable future. The impact of such policy measures will likely be among factors the BOJ will strip away from its new price indicator, analysts say. Prices rose for a range of goods and services not affected by subsidies. Subsidies complicate the messagingThe BOJ ended a decade-long, massive stimulus in 2024 and raised rates in several steps including in December, on the view that Japan was making steady progress in durably achieving its 2% inflation target.

Source: The Edge Markets March 24, 2026 03:09 UTC