The Bank of Japan released inflation data for the first time: February core CPI rose 2.2% year-on-year.

The Bank of Japan said on Thursday that Japan’s core consumer price index (CPI), excluding special factors, rose 2.2% year over year in February. This is the first time the BOJ has released this index. Analysts believe the move is intended to show that the underlying inflation level is in line with expectations, paving the way for further interest-rate hikes.

The new index excludes “structural factors” such as changes in the consumption tax rate or energy subsidies, and its year-over-year rise is higher than the benchmark core CPI data published by Japan’s Ministry of Internal Affairs and Communications this week (1.6%).

BOJ Governor Kazuo Ueda said that after the latest policy meeting this month, the central bank will release new inflation indicators and the latest staff forecasts for Japan’s neutral interest rate, adding that the purpose is to strengthen communication.

In a statement on Thursday, the BOJ said it will publish the relevant data every month, with the specific timing set for two days after the release of national CPI data.

The BOJ said that in February, the “core of the core” CPI excluding energy prices and special factors rose 2.7%, higher than the 2.5% reported by Japan’s Ministry of Internal Affairs and Communications.

Analysts said the indicator is expected to help the BOJ demonstrate that even if the overall inflation rate may temporarily fall below the 2% level, underlying inflation is still likely to remain stably on track to reach the 2% target.

The BOJ said its core inflation indicators are derived by excluding the effects of temporary fluctuations in consumer prices and structural factors, producing data that reflect actual changes in prices. These indicators are commonly used for inflation analysis.

The new price measurement standard will include the relevant data among the indicators the BOJ considers when determining Japan’s actual inflation situation.

Although the BOJ has already released consumer inflation figures after excluding the effects of fresh food and fuel costs, such indexes are still affected by various measures the government has taken to ease the burden on households arising from rising living costs.

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