investingLive – Asia-Pacific News Wrap

Japan Capital CPI Slips Under BOJ Target in Policy Test

Tokyo’s February CPI showed headline inflation at 1.6% year‑on‑year, while core inflation slipped to 1.8%, falling below the Bank of Japan’s 2% target for the first time in 16 months. The core‑core measure, which excludes fresh food and energy, accelerated to 2.5%, outpacing forecasts and indicating persistent underlying price pressure. The dip reflects temporary factors such as fuel subsidies and the removal of gasoline‑tax surcharges, aligning with the BOJ’s view of a short‑term slowdown. Nonetheless, the central bank is expected to maintain its tightening trajectory.