Japan Inflation Hits 1.4% in April, Below 1.7% Expectations

Japan's core inflation fell to 1.4% in April, below the expected 1.7% and March's 1.8%. This marks the fourth consecutive month below the Bank of Japan's 2% target. The Bank of Japan raised its core inflation outlook to 2.8% due to higher crude oil prices. Meanwhile, Prime Minister Sanae Takaichi is considering a supplementary budget to mitigate rising energy costs, amidst challenges from a weak yen, which has seen Japan spend 10 trillion yen on currency intervention. The economy expanded by 2.1% annualized in Q1 2026, suggesting potential for future rate hikes.