Japan’s Consumer Inflation Off 41-year High but Cost Pressure Persists

Japan’s Consumer Inflation Off 41-year High but Cost Pressure Persists
A man runs past the Bank of Japan (BOJ) building in Tokyo on July 29, 2016. Kim Kyung-Hoon/Reuters
Reuters
Updated:

TOKYO—Japan’s core consumer inflation slowed in February but an index stripping away energy costs hit a four-decade high, data showed on Friday, suggesting cost-push pressures may persist longer than policymakers thought.

With inflation still exceeding the Bank of Japan’s 2 percent target, the data will keep alive market expectations of a tweak to its bond yield control policy under incoming governor Kazuo Ueda, analysts say.