Subsidies Suppress Energy Prices, Japan's Inflation Remains Stable

```htmlJapan's Ministry of Internal Affairs and Communications released data on Friday showing that the core consumer price index, excluding fresh food, rose by 1.4% year-on-year, matching economists’ expectations. The core-core CPI, excluding fresh food and energy, increased by 1.8% year-on-year, also consistent with the market consensus. The data indicates that Prime Minister Fumio Kishida's livelihood relief policies have been notably effective, with measures relying primarily on fuel subsidies to curb rising living costs. The cabinet recently finalized a supplementary budget to continue alleviating the impact of the Middle East crisis on ordinary households in the coming months. The Japanese government has also introduced measures to reduce childcare-related expenses. Although the temporary peace agreement between the US and Iran has come into effect, international oil prices remain elevated. Energy traders noted that, even if shipments of crude oil and liquefied natural gas through the critical Hormuz Strait return to normal, it will take at least several months. The weakened yen continues to affect Japan's price trends. Last month, the average exchange rate of the yen against the US dollar was 158.24, more than 8% lower compared to the same period last year, increasing import costs. In early Friday trading in Tokyo, the yen was about 161.31 to the dollar, approaching a forty-year low and raising the possibility of central bank intervention in the foreign exchange market.```