Japan’s consumer inflation slowed for the first time in four months after the resumption of government subsidies lowered utility costs, in a result that backs the case for the Bank of Japan to stay on a gradual path to further rate hikes.
Japan's consumer inflation slowed, but less than expected, to 3.7%. Government energy subsidies slowed price gains, but underlying price pressure remains, with prices excluding energy and fresh food rising 2.6%. This supports the Bank of Japan maintaining a gradual rate hike path.
