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Japan Core Inflation Hits 4% for First Time in Four Decades
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TOKYO—Core consumer-price inflation in Japan reached a fresh 41-year high of 4% in December, adding to pressure on the Bank of Japan to unwind its decadelong monetary easing.
Although the BOJ stood pat on policy this week, the rise in inflation is likely to fuel market expectations that the central bank will abandon its policy of setting a cap on the 10-year government bond yield. It raised the cap to 0.5% in December.
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