Shafaqna English– According to data released on Friday(22 May 2026), Japan’s core annual inflation rate dropped in April to its lowest level in four years, thanks to subsidies on fuel and education. However, analysts predict that rising fuel costs resulting from the Middle East war will cause price growth to accelerate in the coming months.
Although government measures are absorbing some of the inflationary pressure caused by the energy shock, policymakers at the Bank of Japan are making hawkish statements that hint at a possible interest rate hike in June, as they shift their focus to the risk of broadening inflation.
In April, Japan’s core consumer price index (CPI), which excludes the volatile cost of fresh food, increased by 1.4% compared to the same month last year. This was significantly lower than March’s 1.8% rise and also below the market’s median expectation of a 1.7% increase.
Source: Reuters