Business News Asia
The government said Monday that Japan’s core consumer price index (CPI), which excludes fresh food prices, rose 3.6% in October from a year earlier. It was the biggest increase in 40 years as the yen’s depreciation pushed up energy costs.
The core CPI, Japan’s main measure of inflation, rose for the 14th consecutive month, beating expectations of 3.5%.
The latest data show that inflation in Japan has reached its highest level since February, after rising by 3% in September and exceeding the Bank of Japan’s (BOJ) inflation target of 2% for the seventh consecutive month. The BOJ continues to believe that the current global inflation crisis will only be temporary.
The BOJ continues to pursue an ultra-loose monetary policy, in stark contrast to central banks in other major economies that have aggressively raised interest rates to contain inflation.
Interest rate differentials between the BOJ and other central banks around the world have widened even further. In particular with the U.S. Federal Reserve (Fed), which caused the Japanese yen to depreciate against the U.S. dollar to its lowest level in 32 years.