Economic
Japan's inflation falls below BOJ 2% target for first time since 2022
Japan's core price‑growth index slowed more than expected in February, dropping below the Bank of Japan's 2% target and signaling renewed downside risk to the economic outlook.
Japan’s key inflation gauge, the consumer price index excluding fresh food, rose 1.6% year‑on‑year in February 2026, the smallest gain since March 2022 and below the median economist forecast of 1.7%. This marked the first time since 2022 that the measure slipped under the Bank of Japan’s 2% target. A broader headline index, including all items, slowed to 1.3%, also the weakest pace since March 2022, as energy subsidies kept utility costs down. Although underlying inflation excluding energy remains elevated at 2.5%, the recent softening raises concerns that price pressures may weaken before the recovery in wages and consumption is fully entrenched. With the slowdown occurring amid planned monetary tightening by the Bank of Japan and heightened global uncertainty, it increases the risk of an economic slowdown if demand‑side weakness persists.
- Status
- active
- Location
- Japan
- Date added
- 2026-03-25 14:19 UTC
- Last updated
- 2026-03-25 14:19 UTC
- Source
- https://japantoday.com
- Connected threats
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- Not Available