(MENAFN) Official data released on Friday revealed that Japan's annual consumer inflation moderated to 2.7 percent in March, aligning with market expectations. According to figures released by the Internal Affairs Ministry, headline inflation experienced a slight decline from its three-month high of 2.8 percent recorded in February.

Notably, core inflation, which excludes volatile fresh food prices, decelerated more than anticipated to 2.6 percent from the previous month's 2.8 percent, indicating a broader slowdown in price growth across essential goods and services. Moreover, a deeper measure of core inflation, which further excludes energy prices in addition to fresh food, dropped to 2.9 percent. This particular reading, closely monitored by the Bank of Japan, dipped below the 3 percent threshold for the first time since November 2022.

Despite the moderation in annual inflation rates, the consumer prices index witnessed a monthly increase of 0.2 percent in March, marking the fastest pace of growth since October 2023. This uptick in monthly inflation suggests some resilience in price levels over the short term, despite the overall downward trend observed in annual inflation figures.

The data reflects ongoing dynamics within Japan's economy, where policymakers continue to navigate challenges related to price stability and economic growth. These inflation figures provide insights into consumer purchasing power, business decisions, and monetary policy considerations, shaping the broader economic outlook for Japan in the months ahead.

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