0132 GMT - Japan's consumer inflation slowed more than expected in February, but the relief is unlikely to last, says Stefan Angrick at Moody's Analytics. Government support was a key factor in the print, cooling energy prices. Inflation slowed across most categories too, signaling that cost-push forces have eased, but the Middle East conflict poses significant risk. Surging oil and gas prices could drive a jump in energy from March, and renewed yen depreciation is an added concern. Uncertainty will keep the BOJ on hold for now, as will wage growth trends, Angrick says. Annual wage negotiations signaled steady gains but recent experience shows that these no longer translate into broad-based wage growth. Angrick still expects a rate hike in June or July, but sharp inflation or yen moves could pull that forward. (fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
March 23, 2026 21:33 ET (01:33 GMT)
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