Tokyo, 23 December, /AJMEDIA/
Core consumer prices in Japan climbed 3.7 percent in November, a nearly 41-year high, as increased import prices for food and energy, exacerbated by a weaker yen, maintained inflationary pressure, the government said Friday.
The nationwide core consumer price index, excluding volatile fresh food items, rose for the 15th straight month. The gain of 3.7 percent was the largest since December 1981.
Core CPI remained above the Bank of Japan’s 2 percent target for the eighth straight month, having been pushed up by higher import costs and a weak yen.
The BOJ maintains that such cost-push inflation will not last long so its 2 percent target has not been attained in a stable and sustainable manner.
Still, the central bank surprised markets earlier this week by expanding the trading band for 10-year Japanese government bonds, a change markets took as a rate hike but Governor Haruhiko Kuroda said was aimed at smoothing operations in fixed-income markets.
Food prices, excluding volatile fresh food items, jumped 6.8 percent, marking the sharpest rise since February 1981.
A growing number of companies have been passing on higher costs to consumers by raising retail prices.
Energy prices as a whole were up 13.3 percent from a year earlier.
City gas and electricity bills saw marked gains of 28.9 percent and 20.1 percent, respectively.
Kerosene prices increased 5.5 percent, while gasoline prices dipped 1.0 percent, helped by government subsidies for wholesalers to lower retail prices.
So-called core-core CPI, excluding both energy and fresh food items, rose 2.8 percent, up for the eighth straight month.
