FX.co ★ Japan Core Inflation Meets Forecasts

Japan’s core consumer price index (which excludes fresh food but includes energy) rose 1.8% year-on-year in March 2026, up from a 1.6% increase in February and marking the first acceleration in four months, in line with market expectations. Although this latest reading picked up from February’s pace — the slowest since March 2022 — it remained below the Bank of Japan’s 2% target for the second consecutive month. The BoJ is scheduled to hold its next monetary policy meeting on April 28, after leaving its policy rate unchanged at 0.75% last month while signaling a tightening bias to address inflationary pressures stemming from higher oil prices. In its March Summary of Opinions, the Bank of Japan noted that further policy rate hikes remain appropriate as economic activity and prices improve, and that monetary accommodation would be scaled back gradually if the current outlook is maintained.