Japan's latest official data showed that prices rose in November, the largest increase since 1981, and the market speculated that the central bank's ultra-loose monetary policy would shift.

(European News Agency)

[Compilation of Wei Guojin/Comprehensive Report] Japan’s Ministry of Internal Affairs released data yesterday showing that Japan’s core consumer inflation in November is expected to increase as companies continue to pass on rising costs to consumers and the trend of rising prices is spreading to the wider economy. Increase by three years.

7%, another 41-year high.

The surge in inflation has cast doubt on the Bank of Japan's (BOJ) view that cost-push inflation is only temporary, analysts said, and is fueling speculation that the central bank will further scale back its massive stimulus next year.

Reuters reported that Japan's core consumer price index, which excludes volatile fresh food but includes energy prices, was higher than October's annual increase of three.

6%, the eighth month in a row above the 2% target set by the central bank, and the biggest gain since December 1981, when the 1979 oil crisis and a booming economy Affected by high inflation.

Japanese economist Masushima Yuki predicts that core inflation in Japan may hit 4% in December.

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Data showed that "core core" inflation, which excludes fresh food and energy prices, increased by 2% year-on-year in November.

Eight percent, compared with October's two.

A further rise of 5%, the index is an indicator for assessing demand-driven inflation, which is closely watched by the central bank, highlighting the inflationary pressure that Japan, which was once mired in deflation, is under and will continue into next year.

Ultra-loose monetary policy may shift

The Bank of Japan adjusted the yield curve control on the 20th, allowing long-term yields to rise further, shocking the market. This move is seen as a prelude to further withdrawal of the central bank's large-scale stimulus plan.

According to the Nihon Keizai Shimbun, Mark Dowding, chief investment officer of Blue Bay (BlueBay) Asset Management, believes that in view of rising inflation and the Bank of Japan has begun to shift from ultra-loose monetary policy, it is expected Before leaving office, there will be further actions, that is, as soon as March next year, the central bank will completely cancel the control policy of the yield curve. He believes that the Japanese government bond yield has more room to rise than fall.

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