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The Economic Times

Markets / The Economic Times

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Global Market: BOJ walks tightrope as subsidies mask true inflation trend

Japan's core inflation dipped below the Bank of Japan's 2% target in February for the first time in nearly four years. Government subsidies on fuel and utilities significantly offset rising import costs, masking underlying inflationary pressures which remain firm. This divergence presents a communication challenge for the BOJ as it navigates monetary policy.

24 Mar 2026 9:20 am