BOJ carries prices with the low basic inflation in Japan to the lowest level since November 2024

Bank of Japan maintained its policy price at 0.5 % on Friday, in line with the Reuters poll expectations for the economists. The decision to stand comes at a time when the basic inflation rate in Japan decreased to its lowest level since November 2024, reaching 2.7 % in August and represents a third month in a row from the decline.

The primary inflation number – which expels fresh food prices – was in line with 2.7 % expected by Reuters economists.

The country’s main inflation in the country decreased to 2.7 %, from 3.1 % in July, which represents the lowest new level since November 2024.

The “basic” inflation rate, which is called the prices of both fresh food and energy and is closely monitored by the Bank of Japan, was 3.3 %, a decrease from 3.4 % in July.

Reducing rice enlargement, which contributed to the country’s cost of living crisis, significantly to 69.7 %, a decrease from 90.7 % in July, but is still at historical levels.

BOJ noticed in its statement that inflation expectations have increased “moderate”, with the basic inflation in the range of 2.5 % -3 % due to the effects of high food prices.

However, the central bank said that the effects of high food costs, especially in rice prices, are expected to fade.

Analysts said that BOJ officials are looking for signs of economic resilience, “We believe that the GDP of the second quarter, which is It exceeds the market expectationsSurely delivered. “

The GDP in the second quarter in Japan came with higher expectations, as it recorded 0.3 % growth over a quarter of a quarter of the second quarter of 2025, mostly due to the elasticity of export.

This was compared to the review 0.1 % growth in the first quarterAnd it was higher than the 0.1 % increase by the economists included in Reuters.

Moreover, with the completion of the American Trade deal, the exporters in Japan got some of the risks of high definitions, although HSBC warned that the slowdown in global trade still affects them.

In late July, Tokyo reached a deal With the decrease in the customs duties to reduce Japanese exports to 15 %, it decreased from the 25 % that US President Donald Trump threatened in the “tariff speech”.

In a separate note, they added that the high inflationary pressure in Japan – the motivation behind the high prices of rice – which also pays higher calls than high prices.

Member of the Great Liberal Democratic Party, Taro Kono According to what he said, he said On September 9, “If the Bank of Japan delays an increase in prices, I think this will mean that inflation will continue and everything we import will be higher.”