Japan core inflation softens to over four year low, weakening case for BOJ rate hike

Key points

• Japan's core inflation eased more than expected in April to its lowest level since March 2022, potentially weakening the case for an early rate hike by the Bank of Japan.
• Core inflation — which strips out prices of fresh food — came in at 1.4%, lower than the 1.7% expected by economists polled by Reuters and below the 1.8% reading in March.
• Headline inflation was at 1.4%, down from March's 1.5% and the fourth straight month below the central bank's 2% target.
• The so-called "core-core" inflation rate, which is watched by the Bank of Japan and strips out food and energy prices, fell to 1.9% from 2.4%.
• Energy prices fell 3.9% in April compared with a 5.7% decline in March, amid the Iran war.