Japan's core consumer prices increase 0.5 pct in July

Source:Xinhua Published: 2017/8/25 9:50:47

Japan's core consumer prices increased in July from a year earlier owing to higher energy prices, the government said in a report on Friday.

According to the Ministry of Internal Affairs and Communications, Japan's core consumer price index, which excludes the cost of fresh food, increased 0.5 percent year on year, marking the seventh successive month of increase.

The ministry said that the price index in the recording period was lifted by gasoline and electricity as prices for crude oil continued to chart an upward trajectory on a year-on-year basis.

This compares to a 0.4 percent rise a month earlier, with the latest reading in line with median economists' expectations and setting the highest reading since March 2015.

Despite the increase in July, however, the Bank of Japan's (BOJ) lofty 2 percent inflation target remains elusive, economists here said.

Headline CPI gained 0.4 percent on year, the ministry said, maintaining its upward trajectory for the past three months, owing to a 21.1 percent climb in kerosene prices.

With fresh food and energy prices excluded for their volatility, CPI rose 0.1 percent, marking the first increase in five months.

Posted in: MARKETS

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