Economic Buzz: Japan core inflation holds at 1.4%, below BoJ target

Japan?s core consumer inflation, excluding fresh food, remained at 1.4% YoY in May 2026, matching the previous month and marking the lowest reading since March 2022. Inflation stayed below the Bank of Japan?s 2% target for a fourth consecutive month as government fuel subsidies helped offset higher energy costs. Meanwhile, the BoJ?s preferred measure of underlying inflation, excluding fresh food and fuel, slowed to 1.8% YoY, the weakest pace since September 2022.

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