Japan’s prices increased at their fastest pace in more than four decades in December, stoking expectations the country’s central bank could finally move away from ultra-low interest rates.
According to government data, consumer prices rose by 4 percent year-year, the sharpest since 1981.
The price growth in November of 3.7 percent was also the highest in 4 decades.
The inflation figures come days after the Bank of Japan decided not to shift away from its Ultra-easy monetary policy which has bucked international trade toward higher interest rates.
Markets in Asia-Pacific traded high on Friday as investors digested Japan’s inflation data.
The Nikkei rose 225 points at 0.32%, Topix traded 0.4% higher, Kospi in South Korea rose 0.37%, Kosdaq gained 0.62%, the S&P/ASX 200 pared earlier losses to gain 0.26% in Australia while Hang Seng in Hong Kong rose 1% and Hang Seng Tech index rose 1.59% leading the gains in the region.
In mainland China, the Shanghai composite rose by 0.54 while the Shenzhen component rose by 0.4% as China’s central bank left 1-year and 5-year loan prime rates unchanged.
Companies in Japan also plan to raise wages by the end of this year due to high prices in the country.
Japan’s Prices Rise At The Fastest Pace Since 1981
I'm a senior member at Forsige covering topics on diplomacy and foreign policy relating to Asia and the World.