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Japan's Inflation Persists: Rate Hike on the Horizon?

11/29/2025

45 3 Full Breakdown

Summary

Story summary

Japan's core inflation stayed above the Bank of Japan's 2% target in November, driven by higher food costs.
Retail sales rose and the jobless rate held at 2.6%.
Factory output increased, and the Bank of Japan is weighing a December rate hike.
Some analysts say a rate increase could support the yen and ease import costs, while Bank of Japan officials say sustainable inflation requires wage growth and domestic demand.

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Story summary

Japan's core inflation stayed above the Bank of Japan's 2% target in November, driven by higher food costs.
Retail sales rose and the jobless rate held at 2.6%.
Factory output increased, and the Bank of Japan is weighing a December rate hike.
Some analysts say a rate increase could support the yen and ease import costs, while Bank of Japan officials say sustainable inflation requires wage growth and domestic demand.