Japan's Nov core consumer prices rise at fastest pace YoY since 1981

26 Dec '22

1 min read

Pic: Shutterstock

Core consumer prices in Japan rose at their fastest pace 3.7 per cent year on year (YoY) since 1981 in November this year, partly due to higher energy costs, according to data recently released by the internal affairs ministry. The figure far exceeds the Bank of Japan's long-term goal of 2 per cent. Excluding fresh food and energy, the index was up by 2.8 per cent.

The figure is, however, well below the levels witnessed in the United States, the United Kingdom and elsewhere.

"Although low by international standards, Japanese consumer price inflation at three percent to four percent is high enough to feel uncomfortable with stagnant wage growth," wrote Sarah Tan, economist at Moody's Analytics, was quoted as saying in a note by a global newswire.

Since the year began, the headline core consumer price index (CPI) has risen consistently, exerting pressure on the Bank of Japan to tweak its longstanding monetary easing policies. The central bank sees the recent price rises as temporary and feels there is no reason to change course now.

It is widely expected by analysts that price rises in the country will peak around the end of the year or early next year.

ALCHEMPro News Desk (DS)

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