Japanese core inflation rose to 3.2 percent in March, up from 3.0 percent in February, official data showed Friday. The year-on-year increase in consumer prices, excluding fresh food, met market expectations.
Excluding energy, prices climbed 2.9 percent compared to 2.6 percent in February. Overall inflation eased slightly to 3.6 percent, down from 3.7 percent.
The Ministry of Internal Affairs reported that both fresh and non-fresh food prices increased, along with hotel fees. Grain prices surged 25.4 percent, with rice prices spiking by 92.5 percent. Fresh food prices also saw significant hikes, with cabbage prices soaring by 111.6 percent. Lodging costs rose 6.6 percent.
The data could fuel expectations for a potential interest rate hike by the Bank of Japan, as inflation has remained above the central bank’s 2 percent target for nearly three years. However, uncertainty stemming from U.S. President Donald Trump's trade policies may lead the Bank of Japan to maintain its current policy stance for now.