Japan’s core inflation slows, eases pressure on BoJ

Turning point: A shopping district in Tokyo, Japan. Long-stagnant wages in the country are rising at the fastest rate in decades. — Reuters

Japan’s core inflation slowed sharply in November to a pace unseen in over a year, data showed yesterday, highlighting easing cost-push pressures that may give the central bank more time before phasing out its massive monetary stimulus.

While service prices continued to rise, some analysts doubt whether the increase will accelerate enough to create a more demand-driven inflation seen as a prerequisite for the Bank of Japan (BoJ) to exit ultra-loose policy.