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flag Tokyo's core inflation dipped to 1.8% in February 2026, below the BOJ’s 2% target, driven by lower fuel costs and energy subsidies.

flag Tokyo's core inflation fell to 1.8% in February 2026, the first time below the Bank of Japan’s 2% target in over a year, driven by energy subsidies and lower fuel costs. flag Despite the dip, core inflation excluding food and energy rose to 2.5%, signaling persistent underlying pressure. flag Headline inflation was 1.6% to 1.8%, slightly above forecasts. flag Factory output rose 2.2%, though below expectations. flag The BOJ, which raised rates to 0.75% in December, signaled continued tightening if economic data supports it, even as Prime Minister Sanae Takaichi expressed caution on further hikes.

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