Japan's Inflation Rate Remains Above BOJ's Target for 19th Consecutive Month

Speculation grows over potential policy shift as BOJ maintains inflation is driven by global factors, not domestic demand.

Japan's core consumer price index (CPI), excluding fresh food, rose to 2.9% in October, marking the 19th consecutive month above the Bank of Japan's (BOJ) 2% inflation target.
The BOJ maintains that the inflation is driven by higher global commodity prices and a weaker yen, rather than sustainable price gains led by stronger domestic demand and wage growth.
Speculation is growing that the BOJ may soon exit its negative interest rate policy and yield curve control, which sets a 0% cap for the 10-year bond yield.
The BOJ has dismissed such speculation, arguing that the current global cost-push inflation is not sustainable and that healthy wage growth is needed to spur domestic demand and prices in a stable and sustainable manner.
The latest inflation data will be among the indicators the BOJ will consider at its two-day policy meeting ending on December 19.