Japan's core inflation has exceeded the target for 33 consecutive months, solidifying the Central Bank's reason for raising interest rates today.

On January 24th, Jinshi Data reported that Japan’s core inflation rate in December rose to 3% year-on-year, reaching a 16-month high, which increases the possibility of the Central Bank of Japan raising interest rates. The latest data for December means that Japan’s core inflation rate has reached or exceeded the Central Bank of Japan’s target of 2% for 33 consecutive months. In addition, the country’s overall inflation rate is 3.6%, a sharp rise from 2.9% in November, reaching the highest level since January 2023. As the data is released, the Central Bank of Japan is scheduled to announce its interest rate decision today. The strong inflation data provides the Central Bank of Japan with greater room for interest rate hikes.