Japan’s Inflation Tops Central Bank’s Target for 2nd Month in Test of Monetary Stance

Japan’s Inflation Tops Central Bank’s Target for 2nd Month in Test of Monetary Stance
A man looks at a shop at the Ameyoko shopping district in Tokyo on May 20, 2022. Kim Kyung-Hoon/Reuters
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TOKYO—Japan’s annual core consumer inflation topped the central bank’s target for a second straight month in May, data showed on Friday, highlighting the intensifying pressure on the country’s fragile economy from soaring global raw material costs.

The data challenges the Bank of Japan’s (BOJ) view that the recent rise in prices is temporary, and does not warrant withdrawing monetary stimulus.