Japanese core inflation rate remains steady at 3%. The Bank of Japan is set to raise interest rates soon.

Key inflation indicators in Japan have remained at 3% for the second consecutive month, indicating that price pressure continues to exist. Hours later, the Bank of Japan is expected to raise borrowing costs for the first time since January. According to data released by Japan's Ministry of Internal Affairs and Communications on Friday, consumer prices in November, excluding fresh food, rose by 3% year on year, the same as the previous month. The data is in line with economists' expectations. The overall inflation rate also matches analysts' expectations of 2.9%, with the CPI index excluding energy prices increasing by 3%, slightly slower than the previous month. Hours later, the Bank of Japan is expected to raise its benchmark interest rate to 0.75%, the highest level in 30 years, as predicted by 50 surveyed economists. As the bank continues to steer its policies towards neutrality, the data released on Friday may shift investors' focus to the subsequent interest rate hikes in 2026. The core inflation rate has remained at or above the Bank of Japan's target of 2% for 44 consecutive months.