Economic Buzz: Japan inflation edges up to 1.5% as transport costs surge

Japan?s annual inflation rose to 1.5% in March 2026 from 1.3% in February, driven by a sharp increase in transport costs and firmer price gains in household items, communication, and recreation. Core inflation also inched up to 1.8%, though it remained below the Bank of Japan?s 2% target. Food inflation eased to 3.6%, its lowest in 17 months, as rice prices cooled significantly. Meanwhile, electricity and gas prices continued to decline due to subsidies, helping to limit overall price pressures. On a monthly basis, consumer prices rose 0.4%, marking the strongest increase since January 2025 and a rebound from recent declines.

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