Japan’s inflation higher-than-expected, but BoJ still likely on hold
Japan's inflation grew more than a profit, but it is unlikely to pursue the Bank of Japan (BOJ) to raise interest rates in the third quarter 2025. Growth was mainly inspired by high energy prices and the effect of a weak yen, rather than strong consumers' demand. The core inflation, which excludes unstable foods such as fresh foods, still shows no signs of pressure upwards. While wage increases have been positive, it has not reached the levels that will justify the immediate policy. Boj is careful to focus on long -term inflation stability instead of responding to short -term fluctuations. Economists hope that the Central Bank will maintain its waiting-and-look approach through the 3rd quarter, the increase of any price at the end of the year or in 2026 is more likely. The central bank's priority ensures that inflation is inspired by solid demand and wage increases, not temporary external factors such as currency movements or energy diets.
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