Japan inflation accelerates, fueling expectations of BoJ tightening

Japan's key inflation gauge growth rate has significantly increased. It is equal to the one that was recorded in 1981. Thus, speculation about further change in the Bank of Japan's (BoJ) monetary policy continues to appear actively.

According to the internal affairs ministry’s announcement made this Friday, consumer prices (excluding prices for fresh food products) for November rose 3.7% from a year ago. The increase in the core index matches the economists’ predictions. The increase in the overall inflation rate was not as high as it was forecasted. 

Basically, such a rise in prices was triggered by increased prices for processed products. The mentioned increase affected even more than high energy costs. However, it was managed to keep the growth within 4% with the help of numerous government measures.