Japan’s Inflation Slows Less Than Expected, Backing BOJ Hikes

The pace of Japan’s consumer inflation was a little stronger than expected even as the resumption of government energy subsidies slowed price gains, backing the case for the Bank of Japan to stay on a gradual rate hike path.

Consumer prices excluding fresh food rose 3.0% from a year ago in February, decelerating from a 3.2% pace in January, the ministry of internal affairs said Friday. Economists had expected a 2.9% gain. Overall inflation slowed a little less than expected, slipping to 3.7% from 4% in the prior month.