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.
Late on Thursday evening, Russian drone strikes in northeastern Ukraine’s Kharkiv region resulted in the deaths of three people and left three other...
Türkiye’s Ministry of National Defence has warned that the terrorist group Syrian Democratic Forces (SDF)’s inability to integrate into the Syria...
North Korean leader Kim Jong Un assured Chinese President Xi Jinping on Thursday that Pyongyang will continue to stand by Beijing in safeguarding its ...
Türkiye has reiterated its readiness to play a leading role in efforts to secure a just and lasting peace in the Russia-Ukraine war....
Ukraine’s top military commander Oleksandr Syrskyi said on Thursday that the country is working to enhance the performance of interceptor drones to ...
Late on Thursday evening, Russian drone strikes in northeastern Ukraine’s Kharkiv region resulted in the deaths of three people and left three others injured, regional authorities reported.
Türkiye’s Ministry of National Defence has warned that the terrorist group Syrian Democratic Forces (SDF)’s inability to integrate into the Syrian army poses a serious threat to the country’s political and territorial integrity.
North Korean leader Kim Jong Un assured Chinese President Xi Jinping on Thursday that Pyongyang will continue to stand by Beijing in safeguarding its sovereignty, territorial integrity, and development interests, according to North Korean state media KCNA on Friday.
Türkiye has reiterated its readiness to play a leading role in efforts to secure a just and lasting peace in the Russia-Ukraine war.
AnewZ has learned that India has once again blocked Azerbaijan’s application for full membership in the Shanghai Cooperation Organisation, while Pakistan’s recent decision to consider diplomatic relations with Armenia has been coordinated with Baku as part of Azerbaijan’s peace agenda.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
A Polish Air Force pilot was killed on Thursday when an F-16 fighter jet crashed during a training flight ahead of the 2025 Radom International Air Show.
A recent Federal Reserve Bank of New York (New York Fed) study reveals that while the use of artificial intelligence (AI) among businesses has grown significantly over the past year, very few companies have carried out AI-related layoffs.
Rising concerns over the U.S. economy and ongoing tariff disputes have put global government bonds under selling pressure, experts say. Donald Trump’s push for interest-rate cuts, combined with a major spending bill, has shaken investor confidence, sending bond prices down while yields rise.
Access to Google services was restored Thursday after a region-wide outage cut off millions of users across dozens of countries, with disruptions reported in platforms including YouTube, Gmail and Maps.
The pound and the yen came under strain on Wednesday, weighed down by renewed investor concerns over global fiscal health and political uncertainty in Japan.
The price of gold surged sharply on Wednesday, reaching a new record of $3,530.08 per ounce. Analysts say the rise is driven by expectations of a U.S. Federal Reserve (Fed) rate cut in September and concerns over the central bank’s independence.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment