Japan's core inflation hits a 19 month high, strengthening expectations of central bank rate hikes

According to BlockBeats, on February 21st, data released earlier today showed that core consumer inflation in Japan accelerated in January, reaching 3.2% year-on-year, the fastest growth rate in 19 months. The stronger than expected growth has strengthened people's expectations that the Bank of Japan may continue to raise interest rates as inflationary pressures persist. The rise in prices seems to be consistent with the central bank's forecast. Analysts point out that service sector inflation has not accelerated, with a year-on-year increase of 1.4% in January compared to 1.6% in December. However, overall, commodity inflation has not slowed down. In the past three years, Japan's inflation rate has consistently exceeded the central bank's target of 2%. This has prompted a shift in monetary policy. Bank of Japan Governor Kazuo Ueda previously hinted that if wage growth continues to support consumption, allowing businesses to raise wages and maintain price increases, the central bank may further raise interest rates. (Golden Ten)