Japan core inflation dips to lowest since March as rice prices cool

Japan's core inflation rate cooled to 3.1% in July, coming down from 3.3% the month before as rice inflation continued to ease.

The figure — which strips out costs for fresh food — was higher than the 3% expected by economists polled by Reuters.

Headline inflation in the country also dropped to 3.1%, coming down from 3.3% in June and marking its lowest since November 2024.

The so-called "core-core" inflation rate, which strips out prices of both fresh food and energy and is closely monitored by the BOJ, held steady at 3.4%.

Rice inflation eased to 90.7% in July, down from 100.2% in June, and after two months during which prices had more than doubled.

Rice prices have shown signs of easing after a rice shortage and skyrocketing rice prices dominated headlines in the country earlier thi