Inflation in Japan accelerated to 2.8% in February

Tokyo (AFP) – Japan's inflation rate accelerated to 2.8% in February, according to official data published on Friday, keeping this indicator above the 2% target set by the central bank to combat economic recession.

First Amendment: 03/22/2024 – 02:31

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The annual increase in the CPI, which in Japan does not include the volatile development of fresh food products, is in line with market expectations and represents an acceleration from the 2% recorded in January.

The cost of oil, processed food and hotel prices contributed to accelerating inflation, which was partly mitigated by lower gas bills.

For many years, the Bank of Japan has implemented ultra-flexible monetary policy and low interest rates to boost inflation and avoid the risk of deflation in the world's fourth-largest economy.

This indicator has met or exceeded the 2% target for approximately two years.

The central bank this week ended its negative interest rate policy and raised its key interest rate to between 0 and 0.1% for the first time in 17 years.

However, this low interest policy, in contrast to interest rate increases imposed by other large economies to combat inflation, caused the yen to fall minimally compared to the dollar or euro.