TOKYO: Japan’s inflation rate held steady in November, official data showed today, ahead of the Bank of Japan’s (BOJ) monetary policy decision, which could see central bankers hike interest rates to their highest level in 30 years.
The hike would be the first since January and could potentially exacerbate turmoil in debt markets.
Yields on Japanese government bonds have risen in recent weeks on worries about Prime Minister Sanae Takaichi’s budget discipline, while the yen has weakened.
The consumer price index – which excludes volatile fresh food – rose 3% in November, the same rate as a month earlier, in line with market expectations.
“Rice prices rose 37%,” the internal affairs ministry said.
Takaichi, who formally took power in October, has promised to fight inflation as a major priority, and her government succeeded in getting parliament approval for an extra budget worth ¥18.3 trillion (US$118 billion) this week to finance her massive stimulus package.