TOKYO (Reuters – Tokyo core consumer prices likely rose more in February than usual due to higher fuel costs. The result is consistent with the possibility of national price pressures rising, according to a Reuters poll.

In Japan’s capital and across the country, consumer inflation is likely to increase due to rising energy prices. Also, last April’s significant reduction in cell phone service fees was removed from comparison calculations for year-on-year.

According to a poll by 16 economists, Tokyo’s core consumer index (CPI) was forecasted to increase 0.4% in February compared with a year ago. It includes energy, but does not include fresh food prices.

This would make it the sixth consecutive month of an increase year-on-year. It would also mean that consumer prices would rise from 0.2% in January. However, one-off events such as the sudden end of a national campaign to promote travel in the late 2020s skew the data.

According to economists at SMBC Nikko Securities, “Electricity bills and city gas costs are expected to rise faster because of last summer’s increasing imported fuel prices such in LNG (liquefied ),”. This indicates that last year’s high commodity prices have a greater impact on consumers’ pockets with a few months of lag.

Energy prices may rise by as high as 20% if compared with a year ago.

Although many experts predict Japan’s consumer inflation will increase over the next few months, they are still modest when compared to other economies like the United States.

As nationwide core inflation is likely to remain at 2%, the Bank of Japan will continue its huge monetary stimulus.

At 8:30 am on February 25th, data from Tokyo CPI will be released by the government (Feb. 24, 2330 GMT).