TOKYO (Reuters – Core consumer prices in Tokyo rose at a fastest pace for over a month in November. Data showed that fuel and electricity prices rose due to rising global energy prices. Also, overnight stay costs soared.
As raw material shortages continue to push prices upwards, inflation could pick up across the country.
Government data revealed that the core consumer price indicator (CPI) in Japan’s capital, which measures oil prices and excludes fresh food, rose 0.3% by November over a previous year.
This was the largest year-on-year increase since July 2013, when the index gained 0.4%. However, it was slightly lower than the median market forecast of a 0.4% rise.
Tokyo Index, which is a key indicator of national price trends, saw the largest year-on-year rise in energy prices in eight years and the fastest increase in fuel costs for more than 40 decades.
The government offered discounts on travel last year, with low base effects. This also affected the economy.
Tuna and fresh fish prices rose as a result of higher fuel costs, as well stronger domestic demand. A government official confirmed that they were not included in the core consumer index.
Japan’s consumer inflation has barely increased despite the fact that other countries, including the United States and Japan, have been freed from the grip of pandemic-induced lockdowns.
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