According to Jinshi Data, Japan's core consumer inflation rate reached 3.5% in April, the fastest annual growth rate in more than two years. The central bank faces a dilemma of balancing food inflation and growth resistance brought by Trump tariffs.
Core CPI includes petroleum products but excludes fresh food prices, reaching 4.2% for the first time since January 2023. This index has been above the central bank's 2% target for more than three consecutive years.
Another index that does not consider fuel and fresh food rose by 3.0% year-on-year in April, and this index is closely monitored by the Bank of Japan as it better measures demand-driven price pressures.