Japan CPI grows more than expected in April as wage hikes boost spending
Investing.com-- Japanese consumer price index inflation grew more than expected in April after a bumper springtime wage hike helped boost private spending and offset headwinds from higher U.S. trade tariffs.
National core CPI, which excludes volatile fresh food prices, grew 3.5% year-on-year in April against expectations of 3.4%, government data showed on Friday. The print also increased from the 3.2% seen in the prior month and was at its highest level since early-2023.
A core CPI reading that excludes both fresh food and energy prices, and is closely watched as a gauge of underlying inflation by the Bank of Japan, edged up to 3% from 2.9% in the prior month, pulling further above the BOJ's 2% annual target.
National headline CPI remained steady at 3.6% in April.
Friday's strong CPI reading was driven chiefly by strong private spending, after Japanese labor unions won another round of bumper springtime wage hikes earlier this year.
The print also ties into the BOJ's expectations that higher wages will boost prices, which could in turn spur the central bank into hiking interest rates further in the coming months.
While the BOJ had tempered its rate hike outlook due to uncertainty over increased U.S. trade tariffs, a sustained uptick in inflation could push the bank into raising rates further.
The BOJ ended nearly a decade of ultra-loose monetary policy last year, and had raised interest rates twice. The central bank had also hiked rates by 25 basis points in early-2025, but has since struck a more cautious stance on further monetary tightening.
Related articles
Japan CPI grows more than expected in April as wage hikes boost spending
Japan manufacturing PMI shrinks for 11th straight month in May on trade headwinds
Canadian millionaires eyeing exit amid economic worries, survey shows
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
an hour ago
- Entrepreneur
Biopeak Raises USD 3.5 Million to Expand AI-Driven Health Clinics
"We're at a unique point where developments in molecular diagnostics, AI, and imaging allow us to understand the human body in unprecedented ways," says Rishi Pardal, Co-founder and CEO of Biopeak Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Biopeak, a wellness and longevity-focused startup headquartered in Bengaluru, has raised USD 3.5 million (approximately INR 29 crore) in seed funding from a group of notable investors. The round saw participation from Accel founding partner Prashanth Prakash, Claypond Capital--the family office of Manipal Group chairman Ranjan Pai and NKSquared, the investment arm of Zerodha co-founder Nikhil Kamath. Founded in 2024 by Rishi Pardal and Shiva Subramanian, Biopeak delivers personalised health services through its own clinics, combining advanced diagnostics, molecular science, and artificial intelligence (AI) to monitor early signs of physiological change. The company launched its first clinic in Bengaluru in March 2025. The funding will be used to expand Biopeak's clinic footprint across key Indian cities and strengthen its AI-based diagnostic and care delivery platform. "We're at a unique point where developments in molecular diagnostics, AI, and imaging allow us to understand the human body in unprecedented ways," said Rishi Pardal, Co-founder and CEO of Biopeak. "Our platform translates these insights into actionable, individualised health plans aimed at extending one's healthspan, not just lifespan." Biopeak's approach includes a suite of diagnostic tools such as microbiome mapping, organic acid profiling, salivary cortisol rhythm analysis, and whole-exome functional genomics. These are integrated with non-invasive imaging technologies including MRI, CT, DXA, and ECHO, along with tissue-level screenings to assess toxin levels, mineral balance, and oxidative stress. Clients typically undergo more than six hours of detailed consultations guided by a dedicated health manager and a multidisciplinary team of specialists. Health plans are updated regularly based on follow-up tests and consultations. Commenting on the investment, Prashanth Prakash said, "As India's population ages, our challenge is to build systems that not only extend life but also improve the quality of those extended years. Geroscience, early interventions, and scalable healthcare models will be central to this shift." Prakash, who also mentors Biopeak, is the Founding Patron of Longevity India, a platform focused on ageing research and interventions tailored for India's demographic needs.
Entrepreneur
an hour ago
- Entrepreneur
Andhra Pradesh, Nvidia Partner to Develop AI University and Train Engineering Students
The agreement also mentions the possibility of up to 500 AI-focused startups from Andhra Pradesh being supported in applying to Nvidia's Inception Programme, which offers access to technical resources and business networks You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Andhra Pradesh government has signed a memorandum of understanding (MoU) with US-based chipmaker Nvidia to collaborate on the development of a proposed Artificial Intelligence University in the state. The agreement also focuses on AI-related skills training, research, infrastructure, and startup support. As part of the partnership, around 10,000 engineering students across the state are expected to receive AI training over the next two years. Nvidia will assist by providing curriculum guidance and technical resources to engineering colleges. The MoU outlines plans to improve AI research capabilities in the state. Nvidia will work with the government to help set up research centres aimed at addressing technological challenges and advancing sector-specific AI solutions. Joint research efforts are also being considered. The initiative includes the development of computational infrastructure for the proposed university, with Nvidia offering input on software platforms and hardware systems. According to State IT Minister Nara Lokesh, the collaboration is intended to support the state's broader goals of technological skill-building and entrepreneurship. Nvidia's Managing Director for Asia South, Vishal Dhupar, said the effort could serve as a reference point for similar initiatives elsewhere in the country. The agreement also mentions the possibility of up to 500 AI-focused startups from Andhra Pradesh being supported in applying to Nvidia's Inception Programme, which offers access to technical resources and business networks. Participation will depend on eligibility and availability.
Bloomberg
an hour ago
- Bloomberg
Don't Count on a Sustained Fed-ECB Decoupling, Schnabel Says
It would be wrong to expect a persistent policy divergence between the US Federal Reserve and the European Central Bank, according to Executive Board member Isabel Schnabel. 'I expect this trade conflict to play out as a global shock that's working for both global demand and supply — we can discuss which of the two effects on inflation is larger because that that determines the net effect,' the German central banker said on Saturday.
