The store owners of a 70 -year -old “Takoyaki”, U octopo, restaurant chat while cooked by a street in the area of Taito Ward or Tokyo on February 21, 2025.
Richard A. Brooks | AFP | Getty images
Japan inflation grew 3.6% year after year in March, marking three consecutive years in which the main inflation figure is above the 2% target of the Bank of Japan.
The figure was less than 3.7% observed in February.
The so -called “nucleus” inflation rate, which eliminates fresh food and energy prices and is closely monitored by the BOJ, rose to 2.9% from 2.6% in the previous month.
Central inflation in the country, which eliminates fresh food prices, reached 3.2%, in line with Reuters expectations. This was also compared to the 3% rise in February.
The data launch occurs when Japan is locked in commercial conversations with the United States, with the president of the United States, Donald Trump, writing that “great progress has been made.”
The second largest economy in Asia had been with 25% in automotive imports as of April 3, and 25% of steel levies and aluminum entered into force on March 12.
However, Trump has suspended his “reciprocal” or 24% in Japan for 90 days, leaving a reference rate or 10%.
A solid inflation figure would allow the Bank of Japan to increase interest rates and normalize its monetary policy.
However, with the tariffs of the United States that are coming, Japan’s GDP could face the pressure down, and the boxwood space for tariff walks.
This opinion was shared by Nomura analysts in the April 16 note, which said they are his perspective of two walks to a walk by Boj from now until March 2027. Nomura now hopes that the Boj only walks once, in January 2026.
Nomura hopes that the true GDP of Japan will grow in “near zero” of a quarterly quarter in the quarter from July to September 2025 due to Trump’s rates.
As such, it is likely that salary growth, which is a lagged indicator, is pressed down in the time of 2026 Shado, or spring salary negotiations, according to Nomura. This would probably hinder the duration of boxwood rates or after Shado 2026.