---
title: "Japan's Core Inflation Rate Remains Below Target for Third Consecutive Month"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284852427.md"
description: "Japan's core inflation rate remained at 1.5% in April, below the Bank of Japan's target for the third month. This decline is attributed to fuel subsidies countering rising raw material costs. Analysts expect the Consumer Price Index to rise as oil prices increase and the yen weakens, pressuring the Bank of Japan to consider interest rate hikes. The bank kept its benchmark rate at 0.75% but noted the need to manage potential inflation increases and plans to raise rates once geopolitical risks diminish."
datetime: "2026-05-01T00:05:23.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284852427.md)
  - [en](https://longbridge.com/en/news/284852427.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284852427.md)
---

# Japan's Core Inflation Rate Remains Below Target for Third Consecutive Month

On May 1, Jin10 reported that Tokyo's core inflation rate stood at 1.5% in April, marking the third consecutive month it remained below the Bank of Japan's target level. This follows a 1.7% increase in March. According to Jin10, the lower inflation rate was attributed to fuel subsidies offsetting the rising raw material costs due to Middle Eastern conflicts. Analysts anticipate that the Consumer Price Index (CPI) will accelerate in the coming months as oil prices surge and the yen weakens, leading to higher import costs. This situation is putting pressure on the Bank of Japan to consider raising interest rates. Earlier this week, the Bank of Japan maintained its benchmark interest rate at 0.75% but acknowledged the need to prevent further increases in potential inflation rates. The bank also pledged to seek further rate hikes once geopolitical risks subside.

### Related Stocks

- [1369.JP](https://longbridge.com/en/quote/1369.JP.md)
- [2525.JP](https://longbridge.com/en/quote/2525.JP.md)
- [1570.JP](https://longbridge.com/en/quote/1570.JP.md)
- [1346.JP](https://longbridge.com/en/quote/1346.JP.md)
- [1313.JP](https://longbridge.com/en/quote/1313.JP.md)

## Related News & Research

- [BOJ appoints monetary policy expert Masaki to oversee global affairs](https://longbridge.com/en/news/285864495.md)
- [ANALYSIS-Is the futures market getting ahead of itself on rate hikes?](https://longbridge.com/en/news/286890339.md)
- [RBA Minutes: Inflation projected to remain above target until 2027 after 8-1 rate hike vote](https://longbridge.com/en/news/286871114.md)
- [Yardeni sees July Fed hike as inflation risks mount](https://longbridge.com/en/news/286850533.md)
- [The Market Now Expects a Rate Hike. Louis Disagrees](https://longbridge.com/en/news/286468903.md)