According to COINOTAG News on March 21st, CoinDesk analyst James Van Straten has highlighted a significant uptick in Japan’s core inflation metrics. Recent data indicates that Japan’s core inflation rate rose to 3% year-on-year for February, a slight decline from January’s 3.2% but surpassing the anticipated 2.9%. Meanwhile, the overall Consumer Price Index (CPI) experienced a decrease from 4% to 3.7%, yet both figures remain well above the Bank of Japan’s 2% inflation goal.
This scenario underscores Governor Haruhiko Kuroda’s position that Japan is breaking away from prolonged deflation. Notably, Japan now has an inflation rate exceeding that of the United States by almost 100 basis points (bps), underscoring a significant economic shift. The persistent inflation accompanied by rising wages has intensified discussions regarding a potential interest rate hike by the Bank of Japan, raising concerns about renewed volatility in risk assets, including cryptocurrencies.