Band Leika Kihara and Kentaro Sugiyama
TOKYO, May 27 (Reuters) – Core consumer prices in Tokyo, considered a leading indicator of price trends in Japan, rose 1.9% in May from a year earlier, a pace that matches the month’s seven-year high. earlier, a sign that recent fuel-related inflationary pressures have widened.
Rising inflation, still fueled primarily by rising commodity costs, suggests that Japan will see price growth hover around the central bank’s 2% target for much of this year.
The rise in Tokyo’s core consumer price index (CPI), which excludes volatile fresh foods but includes energy costs, was roughly in line with median market forecasts for a gain of 2. 0%.
The so-called core CPI, which excludes volatile fresh food and energy costs, rose 0.9% in May from a year earlier, government data showed on Friday.
Core consumer inflation nationwide in Japan in April exceeded the central bank’s 2% target for the first time in seven years, largely due to rising utility costs. fuel and food imports.
Bank of Japan Governor Haruhiko Kuroda has repeatedly said that such cost-driven inflation would be temporary and not lead to the kind of sustained price growth that justifies withdrawing stimulus.
In new quarterly forecasts produced last month, the BOJ expects core consumer inflation to hit 1.9% in the current fiscal year before moderating to 1.1% in fiscal 2023. and 2024.
(Reporting by Leika Kihara and Kentaro Sugiyama; Editing by Sam Holmes)
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