Japan’s core inflation rose to a more than two-year high in May, exceeding the central bank’s 2% target for over three years and increasing pressure on the Bank of Japan (BOJ) to resume rate hikes.
The core consumer price index (CPI), excluding volatile fresh food, rose 3.7% year-on-year in May, surpassing market forecasts and accelerating from April’s 3.5%. It marked the fastest pace since January 2023’s 4.2%.
A separate index, stripping out fresh food and fuel, climbed 3.3%, the highest since January 2024.
The rise was driven largely by persistent food inflation. Staple rice prices doubled compared to last year, while rice balls rose nearly 20% and chocolate bars by 27%.
Service-sector inflation also rose to 1.4% from 1.3%, reflecting firms passing on higher labour costs.
The data highlights the BOJ’s challenge in balancing inflation pressures with risks from U.S. trade uncertainty under President Trump. A Reuters poll showed a slight majority of economists expect the BOJ’s next rate hike in early 2026.
BOJ Governor Kazuo Ueda said underlying inflation remains below target but could re-accelerate. “If our forecasts materialise, we expect to keep raising interest rates,” he said.
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Iranian President Masoud Pezeshkian has called for greater economic cooperation among Muslim countries, saying their combined economic weight remains disproportionately small compared with their population, strategic location and resources.
Iran is setting conditions for reopening the Strait of Hormuz, including an end to the war, the lifting of the U.S. blockade and sanctions. At the same time, Washington is stepping up economic pressure on Tehran through what the White House calls “Operation Economic Outcast.”
Mail sorting centres used by Nova Poshta, Ukraine's largest private postal company, were destroyed in Russian strikes overnight, the firm said. Elsewhere, four people were injured after drones struck an apartment building in Sevastopol, Crimea, according to the Moscow-installed governor.
The Israeli-U.S. invasion of Iran, which began on 28 February, entered its seventh month on Friday, as Tehran wrapped up a week of high-level visits the region, with officials from Pakistan, Oman and Qatar helping to negotiate a way out of the current stalemate in the conflict.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
Kazakhstan has received a fresh vote of confidence in its economy after S&P Global Ratings upgraded the country’s credit rating, citing stronger public finances, solid reserves and steady economic growth.
AnewZ Business Europe, a new weekday programme, takes viewers inside companies driving growth and innovation across the continent, with Brickken CEO Edwin Mata joining the programme for its first episode with host Chief Global Editor Guy Shone. The show airs every Friday.
Once associated mainly with Muslim-majority countries, Islamic finance has become a global industry. Its assets reached around $5.98 trillion in 2024, according to ICD-LSEG, as more countries explore Shariah-compliant finance.
Fuel restrictions have returned to parts of Moscow and the surrounding region, adding another strain to Russia’s economy as refinery outages and rising imports weigh on the rouble.
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