Inflation in Japan jumps to its highest level since 2015 to 2.2%

Japan’s headline inflation gauge rose over the past month, exceeding the 2% target level set by the Bank of Japan.

The CPI growth rate, excluding fresh food, accelerated to 2.2% in June annually.

This came as energy cost inflation was exacerbated by the weak yen and higher processed food prices.

The Bank of Japan now sees core inflation at 2.3% in the year to March, the first time it has forecast inflation to exceed 2% for the 12-month period, outside of tax-raising years, since setting that target in 2015.

But the Bank of Japan sees inflation returning to decline the following year, indicating that it does not expect high price inflation to continue for an extended period.