Japan’s government sees inflation staying around 0.7% in the longer term

The Japanese government is out with its outlook on the country’s inflation, noting that inflation is seen staying around 0.7% in the longer term.

“Wages are projected to increase by 2.5% in FY24, following a 2.6% jump in FY23,” the government said.

Market reaction

The above projections fail to move the needle around the USD/JPY pair, which was last seen trading at 141.40, almost unchanged on the day.