Inflation in Japan comes by 3.6 %, and the goal of BOJ exceeds three consecutive years

JAban enlargement It grew by 3.6 % year on a year in March, on the occasion of three consecutive years that the main inflation number is 2 % higher than the Bank of Japan.

The number was less than 3.7 % seen in February.

The so -called “basic” inflation rate, which raises the prices of both fresh foods and energy and is closely monitored by BOJ, rose to 2.9 % of 2.6 % in the previous month.

The country’s primary inflation – which expels fresh food prices – reached 3.2 %, in line with Reuters expectations. This was also compared to 3 % climbing in February.

The version of the data comes at a time when Japan was imprisoned in commercial talks with the United States, where US President Donald Trump wrote that “great progress” has been made.

The second largest economy in Asia was hit by 25 % on auto imports as of April 3, and 25 % of steel and aluminum fees came March 12.

However, Trump has suspended 24 % “mutual” definitions on Japan for 90 days, leaving a 10 % basic tariff.

The strong inflation number of Bank Japan will allow increased interest rates and normalization of its monetary policy.

However, with a tariff from the United States looming on the horizon, Japan’s gross domestic product may face the downward pressure, and the BOJ room is restricted to high prices.

Nomura analysts shared this opinion in a note on April 16, which they said are reviewing their view from two heights to one height by BOJ from now to March 2027. Nomura is now expecting that BOJ will rise only once, in January 2026.

Nomura expects the real GDP to “Close to Zero” on a quarter of a quarter in July to the quarter of September 2025 due to the Trump tariff.

As such, wage growth, which is a late indicator, is likely to be subjected to declining pressure around 2026, or spring wages negotiations, according to Nomura. This is likely to make it difficult for BOJ high levels of height during or after Xonto 2026.