TOKYO - The Bank of Japan unveiled a new core consumer price index gauge on Thursday, revealing a 2.2% annual rise in February after stripping out 'institutional factors' such as tax changes and energy subsidies. This marks the first release of the metric, which analysts say strengthens the central bank’s argument that underlying inflation remains on track for sustained 2% targets.
The new index exceeds the government's benchmark core CPI of 1.6%, while the core-core CPI-excluding both energy and special factors-rose 2.7%, up from the official 2.5%. The BOJ plans to publish the data monthly, two days after nationwide CPI figures.
Governor Kazuo Ueda emphasized transparency, announcing the new indicator alongside updated estimates of Japan’s neutral interest rate. The move is aimed at improving communication amid expectations of continued monetary tightening.