Fact Check: "Japan's core inflation hit 3.7% in May, exceeding economists' expectations!"
What We Know
In May 2025, Japan's core inflation rate rose to 3.7%, which is the highest level since January 2023. This figure was reported by multiple sources, including Reuters and CNBC. The core inflation rate, which excludes fresh food prices, surpassed economists' expectations of 3.6% as indicated by a poll conducted by Reuters. Additionally, the previous month's inflation rate was recorded at 3.5% (Reuters) and the so-called "core-core" inflation rate, which strips out both fresh food and energy prices, increased to 3.3% from 3% in April (CNBC).
The rise in inflation has been largely attributed to a significant increase in food prices, particularly rice, which saw a year-over-year spike of 101.7% in May (CNBC). This increase in rice prices has been a major contributor to the overall inflation rate, as rice is a staple food in Japan.
Analysis
The claim that Japan's core inflation hit 3.7% in May and exceeded economists' expectations is supported by credible sources. Both Reuters and CNBC reported the same inflation figure and noted that it was higher than the forecasted 3.6%. Furthermore, the data aligns with the Bank of Japan's ongoing challenges in managing inflation, which has remained above the central bank's target of 2% for 38 consecutive months (CNBC).
The reliability of these sources is high; Reuters is a well-established news organization known for its financial reporting, and CNBC is a reputable outlet focusing on business news. Both organizations provided detailed insights into the factors driving inflation, including the impact of rising food prices and the central bank's monetary policy responses.
While some analysts, such as Marcella Chow from JP Morgan Asset Management, have commented on the potential for future inflation trends to be influenced by food prices, the immediate data supports the claim that core inflation has indeed reached 3.7% (CNBC). The consensus among economists and analysts regarding the inflation figure further reinforces the accuracy of the claim.
Conclusion
Verdict: True
The claim that Japan's core inflation hit 3.7% in May, exceeding economists' expectations, is accurate. The data from reliable sources confirms that the inflation rate not only surpassed the forecast but also marked the highest level since January 2023. The significant rise in food prices, particularly rice, has been a primary driver of this inflation increase.
Sources
- Japan's core inflation hits 2-year high, keeps rate-hike bets alive
- Japan's core inflation hits highest level since January 2023, putting pressure on BOJ to raise rates
- Japan's core inflation hits 2-year high of 3.7% in May
- Japan's Core Inflation Hits 2-year High, Keeps Rate-Hike Bets Alive
- Japan core CPI inflation up more than expected in May, furthers case for rate hike
