The inflation rate in Japan recorded the highest level in the country in nearly 8 years, as the rate of consumer price inflation in the Asian country jumped to about 2.8% during the month of August.
The pace of inflation in Japan has exceeded the central bank's target of 2% for the fifth consecutive month, with increased price pressure due to rising raw material costs and a weak yen, CNBC Arabia reported.
Strong inflation in Japan last August fueled growing skepticism among economists that price pressure will last longer than the Bank of Japan expected, although many still expect no immediate change in its monetary easing policy.
Next Thursday, September 22, the Bank of Japan will end its two-day policy meeting, as analysts expect the bank to take into account the fragility of the economic recovery when deciding to keep short and long-term interest rates near zero.
The rise in Japan's core CPI, which excludes volatile fresh foods but includes fuel costs, was slightly larger than the average market expectation of a 2.7% increase, and followed a 2.4% increase in July 2022.
This increase in Japan's inflation rate is the fastest since October of 2014, largely due to higher utility bills, higher food and grocery prices, and the effect of fading mobile phone fee cuts implemented last year.
Japan's economy, which is the third largest in the world, grew at an annual rate of 3.5% in the second quarter of this year. But his recovery has been hampered by the resurgence of COVID-19 infections, supply constraints and rising raw material costs.
With inflation remaining at moderate levels compared to price hikes in other major economies, the Bank of Japan pledged to keep interest rates very low, and not to join the current global wave of monetary tightening.
