Financial News: Japan Consumer Price Inflation At 41-Year High

Japan Consumer Price Inflation At 41-Year High

02/24/2023 - 00:21:00 (RTTNews)

(RTTNews) - Japan's consumer price inflation accelerated further in January to hit a fresh 41-year high, adding pressure on the central bank to withdraw its massive monetary stimulus.

Core inflation that excludes volatile fresh food climbed to 4.2 percent in January from 4.0 percent in the previous month, data from the Ministry of Internal Affairs and Communications showed Friday.

The rate was the fastest since September 1981 and matched economists' expectations. Headline inflation rose to 4.3 percent from 4.0 percent in December. The 4.3 percent was the strongest since December 1981. Inflation has remained above the 2 percent target for the tenth straight month.

Excluding fresh food and energy, inflation advanced to 3.2 percent from 3.0 percent in the previous month.

Fresh food prices advanced to 7.2 percent from 4.9 percent. Meanwhile, growth in energy prices slowed to 14.6 percent from 15.2 percent a month ago.

On a monthly basis, overall consumer prices gained 0.4 percent, following December's 0.3 percent increase.

With government energy subsidies taking effect from this month, inflation is expected to fall below the Bank of Japan's 2 percent target by mid-year, Capital Economics' economist Darren Tay, said.

At the January monetary policy meeting, the <a href=https://www.rttnews.com/3337616/bank-of-japan-maintains-yield-curve-control-defying-expectations.aspx target=_blank >BoJ</a> left its yield curve control and negative interest rates unchanged.

At the parliamentary hearing on Friday, BoJ Governor nominee <a href=https://www.rttnews.com/3343504/kazuo-ueda-nomination-as-boj-chief-a-harbinger-of-policy-shift.aspx target=_blank >Kazuo Ueda</a> said it would be appropriate to continue monetary easing measures. Markets widely expect a policy change under the governorship of Ueda.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Denmark Economic Sentiment Rises Further (07 min(s), 06 sec(s) ago)
(RTTNews) - Denmark's economic sentiment rose for a third month in a row in March, figures fro ...Full Story»

U.S. Durable Goods Orders Unexpectedly Slump As Aircraft Demand Extends Nosedive (39 min(s), 06 sec(s) ago)
(RTTNews) - Reflecting a continued slump in orders for transportation equipment, the Commerce Depa ...Full Story»

Spain Q4 GDP Growth Unrevised At 0.2% (34 min(s), 06 sec(s) ago)
(RTTNews) - Spain's economy expanded at a stable pace as initially estimated in the final quar ...Full Story»

Czech Economic Sentiment Rises To 93.9, Highest In 7 Months (25 min(s), 06 sec(s) ago)
(RTTNews) - The Czech economic confidence index improved to its highest level in seven months, whi ...Full Story»

UK Private Sector Logs Strong Growth In March (07 min(s), 06 sec(s) ago)
(RTTNews) - The UK private sector registered another increase in activity in March, reflecting rob ...Full Story»

U.S. Durable Goods Orders Unexpectedly Slump 1.0% In February (06 min(s), 06 sec(s) ago)
(RTTNews) - Reflecting a continued slump in orders for transportation equipment, the Commerce Depa ...Full Story»

Eurozone Services Activity Lifts Private Sector Growth To 10-Month High (12 min(s), 06 sec(s) ago)
(RTTNews) - Eurozone private sector logged the strongest growth in ten months in March underpinned ...Full Story»

Sweden Producer Price Inflation Eases On Lower Energy Costs (10 min(s), 06 sec(s) ago)
(RTTNews) - Sweden's producer price inflation eased for the third straight month in February t ...Full Story»