AI Data Insight
In the fourth quarter of 2025, Japan's GDP deflator continued to climb to 113.5 from 112.7 in the previous quarter, indicating that the overall economy still faces stubborn inflationary pressures. According to market data, the indicator's annual growth rate reached 3.4%, exceeding expectations. This stands in stark contrast to the weak real GDP growth, highlighting the erosion of domestic demand by surging prices. This sticky inflation has also intensified market expectations for the Bank of Japan to adopt a hawkish policy earlier.