Japan Inflation Slowed More Than Estimated

In August, Japan's inflation slowed more than expected, with the core CPI rising only 3.1% year-on-year, below July's 3.3% and the projected 3.2%. The core CPI has been above 3% since April, influenced by a sales tax increase from 5% to 8%. Without this tax effect, inflation was just 1.1%, far below the Bank of Japan's 2% target. BOJ Governor Haruhiko Kuroda plans to continue easing policies to reach this target. Meanwhile, the yen's depreciation, reaching a six-year low, may increase import prices, affecting inflation.

What was the core CPI increase in Japan for August, and how did it compare to July's rate?

• 3.2%, which was higher than July's rate

• 3.3%, which was the same as July's rate

• 3.1%, which was lower than July's rate

• 3.1%, which was higher than July's rate

What was the primary factor contributing to the rise in prices since April?

• Increase in global oil prices

• Sales tax increase from 5% to 8%

• Increase in export tariffs

• Decrease in consumer spending

Without the effect of the sales tax increase, what would Japan's inflation rate have been?

• 2.0%

• 1.5%

• 1.1%

• 3.0%

What is the Bank of Japan's target inflation rate?

• 1%

• 2%

• 4%

• 3%

How has the weaker yen affected Japan's inflation?

• It has decreased the cost of imports

• It has increased the cost of imports

• It has stabilized the cost of imports

• It has no effect on the cost of imports