Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
Gold Price Hits Two-Month High as Investors Await US Inflation Data 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Gold Prices Rise as Fed Rate Hike Bets Ease 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
South Korean Won Leads Asian FX Losses as Dollar Rises 
US Stock Futures Flat as Iran Strait of Hormuz Demands Fuel Oil Concerns 
Singapore Raises 2026 GDP Growth Forecast as AI Demand Fuels Economy 
S&P 500, Nasdaq Slip as Oil Jumps on Iran Tensions 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
European Stocks Flat as Oil Prices Rise, US CPI in Focus 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
Gold Prices Hold Near Seven-Week High as Markets Await U.S. Inflation Data 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
Japan's core inflation climbed to 2.7% in November driven by higher food and fuel costs. The surge intensifies pressure on the Bank of Japan to reconsider its rate policies as households face mounting expenses and inflationary challenges grow.
Food and Fuel Costs Drive Inflation Surge
The report indicated that rising food and fuel costs hurt households in Japan, which exacerbated core inflation in November. As a result, the central bank is under pressure to hike interest rates, Investing.com shares.
These numbers show that inflation is getting worse, which might lead the Bank of Japan to increase borrowing costs even more. The decision to keep interest rates at 0.25% on Thursday was preceded by these numbers.
Despite a median market prediction of a 2.6% increase, the national core consumer price index (CPI) increased 2.7% year-over-year in November, according to official statistics. This index accounts for oil products but does not include fresh food costs.
Core CPI Surge Challenges BOJ Strategy
Due in part to the persistently high costs of rice and the phase-out of government subsidies to limit utility expenses, it quickened from a rise of 2.3% in October to a rapid increase.
After a gain of 2.3% in October, a separate index that eliminates the impact of volatile fresh food and fuel, which is carefully examined by the Bank of Japan as a more accurate indicator of demand-driven inflation, increased by 2.4% in November compared to the previous year.
On the belief that Japan was about to achieve its 2% inflation objective in a sustainable way, the BOJ halted negative interest rates in March and increased its short-term policy rate to 0.25% in July.
BOJ Remains Poised for Further Rate Hikes
Ueda has emphasized that the BOJ is prepared to hike rates once again in the event that Japan maintains its momentum in achieving its price objective, supported by strong domestic demand and sustained wage rises.
