Japan Inflation Remains Above Target for 44 Months, Boosting Rate Hike Prospects

Japan's consumer inflation rate slowed to 2.9% in November, staying above the Bank of Japan's (BOJ) 2% target for a 44th consecutive month. Core inflation which strips out fresh food prices held steady at 3%, matching economists' expectation, while “core-core” inflation excluding food and energy fell to 3% from 3.1%. The data comes as the BOJ is set to raise rates to their highest level since 1995 as it concludes its policy meeting. Rice inflation slowed for a sixth month but remained high at 37.1%. A rate hike could help rein in inflation but risks hurting Japan's already weak economy.