Japan core inflation accelerates after five months as Iran war pushes energy prices higher
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By Lim Hui Jie
Published on April 23, 2026.
Japan's core inflation has accelerated for the first time in five months, rising to 1.8% in March, driven by the Iran war's increased energy prices. The inflation figure was in line with economists' predictions and was higher than the 1.6% seen in February. Headline inflation remained below the central bank's 2% target for a second consecutive month. A Bank of Japan survey revealed that over 83% of respondents expect prices to be higher after one year. The central bank is expected to maintain its gradual rate-hiking trajectory and potentially raise interest rates.
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