Japan’s Inflation Gauges Jump to Record High, Exceeding Wage Gains

Window cleaners prepare their work in front of an electronic stock board showing Japan's Nikkei Index at a securities firm, on Aug. 23, 2022, in Tokyo. Asian shares traded lower that day, echoing a broad sell-off on Wall Street amid speculation about another interest rate raise from the U.S. Federal Reserve. AP Photo/Eugene Hoshiko

Japan’s core inflation measures jumped to a record high, according to its central bank, the Bank of Japan (BoJ), on Aug. 23, as rising energy costs and a weak yen (owing to U.S. dollar strength) have forced Japanese businesses to pass their costs onto consumers, with several price gauges hitting new highs.

Inflation in Japan exceeded its central bank’s 2 percent target in July, putting Bank of Japan Governor Haruhiko Kuroda’s persistence with ultra-low interest rates under more scrutiny.