Japan’s core consumer inflation remained at 1.4% year-on-year in May, mirroring the lowest rate recorded since 2022. This figure, excluding fresh food prices, aligned with economists’ forecasts. The stability is largely attributed to ongoing government subsidies designed to mitigate rising energy costs. While inflation has cooled from previous peaks, the Bank of Japan remains cautious about prematurely adjusting its monetary policy. The continued support measures are playing a significant role in preventing a more substantial increase in the cost of living for consumers. Analysts are closely watching future data to determine the long-term impact of these subsidies and the potential for sustained inflationary pressures.