Japan's inflation outpaces US price rises for first time in 8 years

hl.co.uk:

We don’t support this browser anymore. This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Newsroom

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.

HL Podcast

HL Insight

Headline inflation in Japan rose to 3.3 per cent in June, outpacing the US figure for the first time in eight years and underscoring how Asia's most advanced economy is no longer an outlier in global inflation.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

21 Jul 2023

Price pressures in Japan, which has battled deflation for most of the past three decades, have proven to be broader and stickier than expected. This increases the pressure on the Bank of Japan, which meets next week and faces calls from investors to unwind its ultra-loose monetary policy.

Japan remains the world’s only central bank with negative interest rates, and any reversal of this strategy would have massive implications for global financial markets.

Annual inflation of the consumer price index and core CPI, which excludes fresh food, rose from 3.2 per cent in May to 3.3 per cent in June, according to data released on Friday. The rise, mainly due to higher utility bills, was in line with market expectations.

That compares with 3 per cent inflation in the US, where the Federal Reserve has raised its benchmark interest