Core inflation in Japan accelerated for first time in 4 months

Japan’s core inflation rate accelerated for the first time in 4 months during October

According to data released today, Friday, the core consumer price index in Japan rose 2.9% last month on an annual basis, compared to expectations that it would record 3%.

The acceleration of the core inflation rate, which excludes food price fluctuations, comes after it recorded its lowest level in 13 months in September, at 2.8%.

Core inflation had accelerated from September levels after energy and electricity subsidies that began in January were halved.

Electricity and gas bill prices fell by about 16.8% and 10.2%, respectively, in October, which is a slower pace than recorded in September, at 24.6% and 12.5%, respectively.

Core inflation figures exceed the Bank of Japan’s 2% target for the 19th month in a row. However, the Japanese central bank insists that cost pressures are led by rising global commodity prices and a weak yen, and are not an indication of sustainable price gains led by stronger growth rates for domestic demand and wages.