Japan’s core inflation climbs to 3.5%, highest in more than 2 years

Japan’s main inflation intensified by 3.5% in April, shown by government figures on Friday, raising rice prices and turned into part, as the Central Bank stops its rate increased currency to assess the impact of American tariffs.

The figure of core inflation, which snatches prices for fresh food, exceeded 3.4% expectations, according to economists voted by Reuters, increased from 3.2% in the last month and the highest level since January 2023.

The headline inflation climbed 3.6% from a year ago, stable from the previous month and over the 2% target of Bank of Japan for more than three years.

Bank of Japan Governor Kazuo Uaida has indicated its stance with the intention of increasing the price trends, while citing the need to closely monitor the impacts of American tariffs.

Rice prices in Japan have doubled. The average price in 1,000 supermarkets across the country continued to hit a record height at a record high, with the prices of 54 yen 54 yen for a hiking of 5 kg of rice from 4,268 yen ($ 29.63) till May 11 ($ 29.63) till May 11 ($ 29.63) till May 11.

The Prime Minister of the country, Shigeru Ishiba, has allegedly promised to reduce rice prices, below 4,000 yen ($ 28) per 5 kg bag, which is doing his job on the line.

Core inflation is expected to decrease in the coming months due to crude oil prices and Yen’s praise, said Masato Koic, economist of Sompo Institute Plus.

As seen during Trump’s first administration, an oversupali of food stems from American tariffs can reduce food prices, Koic said that rebupping government subsidy for electricity and gas bills in summer will also cause pressure on inflation.

Japanese Yen strengthened 0.15% to 143.80 against the US dollar after its release, while benchmark Nikkei 225 cried marginally.

Asia-Pacific chief Marcel TheLent estimated that continuous strength in inflation would convince BoJs to increase interest rates again in October.

Japan currently faces a 10% baseline tariff that US President Donald Trump imposed on most business partners, with 24% “mutual” tariffs, which is ready to apply in July, until the country does not manage to attack a deal with America until the country does not manage to attack a deal with America

The country is also one of the most difficult hits from 25% of Trump on auto, steel and aluminum products.

Bilateral interactions, however, appear in a deadlock. Senior Japanese officials have requested that Washington removes all tariffs on Tokyo, emphasizing that the country will not participate in any deal that risks the interests of the country.