Japan's core inflation hits more than 2-year high

April CPI up 3.5%, keeping pressure on BOJ

Japan's inflation remains above the Bank of Japan's target, increasing pressure on the central bank to raise interest rates. (Photo by Tomoki Mera)

May 23, 2025 09:27 JST

TOKYO (Reuters) -- Japan's core consumer inflation hit 3.5% in April to advance at its fastest annual pace in more than two years, data showed on Friday, maintaining pressure on the central bank to continue raising interest rates.

The data underscores the Bank of Japan's predicament of balancing price pressures from persistent food inflation against growth headwinds from U.S. President Donald Trump's tariffs.