Economists: Japan's core inflation supports the Bank of Japan's rate hike in May

ChainCatcher news, Min Joo Kang, a senior economist for Korea and Japan at ING, stated in a research report that the core inflation data released by Japan earlier today supports the Bank of Japan's decision to raise interest rates at the two-day meeting that ended on May 1.

The core inflation rate (excluding fresh food and energy) is closely monitored by the central bank, and in February, this indicator rose slightly from 2.5% in January to 2.6%. The economist noted that although the core inflation rate is in line with market consensus, it marks the fifth consecutive month of growth. He added that the data also shows a steady increase in service prices month-on-month, which could be a reason to support the Bank of Japan's interest rate hike.