Euro area consumer price index
In March data, Japanese prices have declined when excluding fresh food and energy.
What is driving up Japan's prices is mainly energy (gasoline, utility costs, etc.) and food (imported grain, etc.); excluding those, prices are not rising.
The Bank of Japan's monetary policy aims for price stability. If raising rates causes crude oil prices to fall, they might raise rates. If a rate hike stabilizes the yen depreciation, the yen price of energy would rise only slightly, if at all.
On the other hand, consumption in the Japanese economy is weak. What would happen if rates were raised in such a situation? Car loan interest rates would rise, mortgage (variable) rates would rise, and the domestic economy could fail dramatically.
What about Europe? There are expectations of rate hikes, but what about inflation?
Overall prices are rising. Energy from Russia is being cut off, and utility costs are soaring. So what happens when you exclude energy and food?
Unlike Japan, they are rising.
The euro area economy is not doing wellyet there are valid reasons for rate hikes.
As above, so what about the euro area's past price trends?
Refer to the following graph.
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