Data published by the Statistics Bureau of Japan showed that in March, the core consumer price index in Tokyo - an early indicator of nationwide figures - rose by 2.4% per annum, as expected, after an increase of 2.5% per annum in February. Despite the slowdown, the latest reading stayed above the Bank of Japan's 2% target, indicating that the Central Bank may exercise caution in further tightening monetary policy after abandoning negative interest rates last week.
Meanwhile, Tokyo CPI ex food and energy grew by 2.9% per annum, also slowing down compared to February (+3.1% per annum, revised from +2.5% per annum). The headline CPI stood at 2.6% per annum in March, accelerating from a downward revised 2.5% gain in February.
Separate data showed that in February the unemployment rate rose by 0.2% to 2.6% (the highest value since September 2023). Economists had expected the unemployment rate to remain unchanged. The number of unemployed increased by 120 thousand to 1.82 million and employment gained 220 thousand to 67.83 million. The jobs-to-applicants ratio inched down to 1.26, from 1.27 in January. The median forecast was for 1.27.