Japan’s core inflation slowed to 1.6% in February

2026-03-24 - 00:30

Japanese Prime Minister Sanae Takaichi has promised to fight inflation as a major priority. (EPA Images pic) TOKYO: Japan’s core inflation slowed to 1.6% in February, government data showed Tuesday, although it could soon rise again due to soaring oil prices because of the Middle East war. The year-on-year rise in consumer prices, which excludes volatile fresh food, eased from 2% in January partly thanks to government energy subsidies. Also stripping out energy prices, inflation mellowed by more than expected to 2.5% in February from 2.6% in January. Prime Minister Sanae Takaichi, who was appointed leader in October, has promised to fight inflation as a major priority. Public discontent over rising prices largely contributed to the downfall of her predecessor Shigeru Ishiba. However, Japan’s central bank warned last week that it expected inflation to increase because of the “recent rise in crude oil prices” caused by the Middle East war. Japan depends on the Middle East for 95% of its oil imports. The government on Thursday began an emergency subsidy programme to drive down the cost of gasoline.