Japan's consumer inflation stays above cenbank's target for 44th month, boosting case for a rate hike

Group 1: Inflation and Economic Indicators - Japan's consumer inflation rate decreased to 2.9% in November, remaining above the 2% target for the 44th consecutive month, which strengthens the prospects of a rate hike by the Bank of Japan (BOJ) [1] - Core inflation remained unchanged at 3% in October, aligning with economists' estimates, while the "core-core" inflation rate fell to 3% from 3.1% [2] - Rice inflation slowed to 37.1%, marking the sixth consecutive month of decline, after experiencing over 50 years' highest price growth earlier this year [3] Group 2: Bank of Japan's Policy and Economic Growth - The BOJ is expected to raise interest rates to their highest level since 1995, as it concludes its policy meeting, despite concerns about the weak Japanese economy, which contracted 0.6% quarter on quarter and 2.3% on an annualized basis in the third quarter [2][4] - Prime Minister Sanae Takaichi emphasized the need for proactive spending to boost growth and tax revenues, advocating for looser monetary policy and criticizing BOJ's rate hikes [4] - BOJ Deputy Governor Masazumi Wakatabe stated that raising Japan's neutral interest rate is essential for balancing economic growth and inflation, while cautioning against premature rate hikes [5][6] Group 3: Currency Impact - Following the inflation data release, the yen strengthened slightly, trading at 155.53 [7]