Japan’s inflation rate ticked up to 2.9% in October though that increase was less than the 3% reading expected amongst economists.
The rate of inflation in Japan has been above the central bank’s 2% annualized target for 19 consecutive months.
The Bank of Japan has blamed stubbornly high inflation on higher global commodity prices and a weak currency.
Core inflation, which strips out volatile fresh food and energy costs, rose 4% in October, slowing from a 4.2% gain in September.
Japan’s core inflation rate has been above 4% for seven consecutive months.
Economists are calling on Japan’s central bank to end its negative interest rate policy, as well as its yield curve control that sets a 0% cap for the 10-year bond yield.
So far, the Bank of Japan has refused to make changes to its policies, saying that the current rise in global commodity prices is not sustainable and will end soon.
Japan’s government has called on companies to raise wages to help employees overcome higher living costs.
The Bank of Japan’s next decision on interest rates is scheduled for Dec. 19.