On Friday, Japan announced its Consumer Price Index (CPI), which increased by 3.7% year-on-year in February, slowing from 4% in the previous month. Meanwhile, the core Consumer Price Index rose by 3%.

Bank of Japan (BOJ) Governor Kazuo Ueda commented on future monetary policy, stating that the central bank needs to implement stricter policies before it is too late in order to achieve the 2% inflation target again.

At the same time, the results of Japan’s annual labor negotiations indicated that most companies agreed to labor unions' demands for wage increases for the third consecutive year, which is expected to boost consumer spending.

Source: Fxstreet