Japan's key inflation index remained at 3% for the second month in a row, indicating continued pressure on prices. In a few hours, the Bank of Japan is expected to raise borrowing costs for the first time since January this year. According to data released by Japan's Ministry of Internal Affairs and Communications on Friday, consumer prices excluding fresh food rose 3% year on year in November, the same increase as the previous month. The data is in line with economists' median expectations. The overall inflation rate was also in line with analysts' expectations of 2.9%. The CPI index excluding energy prices rose 3%, which was slightly slower than the previous month. A few hours later, the Bank of Japan is expected to raise the benchmark interest rate to 0.75%, the highest level in 30 years. The 50 economists surveyed all made this prediction. As the bank continues to guide policy in a neutral direction, data released on Friday may allow investors to focus on the pace of subsequent interest rate hikes in 2026. The core inflation rate has remained at or above the Bank of Japan's 2% target for 44 consecutive months.

Japan's key inflation index remained at 3% for the second month in a row, indicating continued pressure on prices. In a few hours, the Bank of Japan is expected to raise borrowing costs for the first time since January this year. According to data released by Japan's Ministry of Internal Affairs and Communications on Friday, consumer prices excluding fresh food rose 3% year on year in November, the same increase as the previous month. The data is in line with economists' median expectations. The overall inflation rate was also in line with analysts' expectations of 2.9%. The CPI index excluding energy prices rose 3%, which was slightly slower than the previous month. A few hours later, the Bank of Japan is expected to raise the benchmark interest rate to 0.75%, the highest level in 30 years. The 50 economists surveyed all made this prediction. As the bank continues to guide policy in a neutral direction, data released on Friday may allow investors to focus on the pace of subsequent interest rate hikes in 2026. The core inflation rate has remained at or above the Bank of Japan's 2% target for 44 consecutive months.