In July, Japan’s core consumer prices increased by 2.7 percent compared to the previous year, marking the third consecutive month of expansion. This rise was driven by higher energy costs following the termination of government subsidies, as reported by the internal affairs ministry.
The core consumer price index, excluding volatile fresh food, rose by 2.6 percent in June, maintaining the inflation rate at or above the Bank of Japan’s 2 percent target since April 2022. Additionally, the core-core CPI, which excludes energy and fresh food, increased by 1.9 percent.
The surge in energy prices by 12.0 percent, along with significant increases in electricity and gas costs, contributed to the overall inflation trend. Food prices also saw a 2.6 percent increase, with notable spikes in rice prices and durable goods.
This persistent inflation may influence the Bank of Japan’s decision on further rate hikes, as experts suggest a possible increase by the end of the year. Market volatility following the recent rate hike underscores the need for cautious monitoring of price trends.
© KYODO