Japan’s inflation is set to cool sharply from its peak as Prime Minister Fumio Kishida’s energy subsidies kick in, complicating the picture for investors trying to gauge whether the central bank is right about the path for core inflation.
Early inflation figures for Tokyo, due Friday, are expected to show core consumer price growth slowing a full percentage point to 3.3% in February, from January’s four-decade high.
A figure above that may bolster bets on a Bank of Japan policy tweak, while a weaker number would embolden dovish wagers, according to comments from market watchers.
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