Japan core inflation accelerates after five months as Iran war pushes energy prices higher

japan's core inflation hit 1.8% in march, the first acceleration in five months, up from 1.6% in february. the iran war pushed energy prices higher, stoking consumer inflation. headline inflation came in at 1.5%, still below the boj's 2% target for a second straight month. the "core-core" rate, stripping out food and energy, dipped to 2.4% — its lowest since october 2024. rice inflation, which had topped 100% in mid-2025, slowed to 6.8%, its weakest since january 2024. a boj survey found over 83% of respondents expect higher prices in a year. bank of america's takayasu kudo said energy effects will become more pronounced by summer, pushing up actual inflation and expectations. the boj meets april 27-28 and is expected to hold rates at 0.75%, but citi called the hold "likely to be hawkish" due to yen depreciation risks. reuters reported the boj will cut its 2026 growth forecast and sharply raise its inflation forecast.