Sunday, May 15, 2022

Core inflation in Japan’s capital hits 2-year high in March By Reuters


© Reuters. FILE PHOTO: Customers eat ramen noodles inside a ramen noodle shop ‘Shirohachi’ managed by sixty-year-old Yashiro Haga, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan November 20, 2020. REUTERS/Issei Kato

By Yoshifumi Takemoto and Kantaro Komiya

TOKYO (Reuters) – Core consumer prices in Japan’s capital rose at the fastest annual increase in more than two years in March, propelled by soaring energy costs.

The relentless uptrend in global commodity prices following the war in Ukraine could ruin import-reliant Japan’s fragile recovery from the pandemic, even as domestic COVID-19 infections wane and social distancing curbs are reduced, analysts say.

The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes energy items, rose 0.8% year-on-year in March, the fastest pace since December 2019 and higher than a median market forecast for a 0.7% gain.

It followed a 0.5% rise in February.

The inflation measure in Japan’s capital is considered a leading indicator of the nationwide core CPI that is released around a month later.

A 26.1% surge in energy prices – the fastest annual growth in 41 years – drove up the Tokyo core CPI for March, the data showed.

Prices also increased among a wide range of items from food to entertainment services.

In the overall reading that includes fresh food prices, Tokyo CPI in March rose 1.3% from a year earlier, hitting the highest since April 2019.

But the one-off effect of cuts in cellphone fees stripped 1.08 points off the overall index, it showed.

Even before Russia’s invasion of Ukraine, policymakers at the Bank of Japan had expected core inflation to approach its rarely-met 2% target, according to the minutes of their January meeting released on Thursday.

Japanese Prime Minister Fumio Kishida is set to instruct his cabinet next week to draw up new relief measures, such as fuel subsidies and other measures for households, to protect the economy from fresh threats of rising fuel costs and other goods.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories