MNI BRIEF: Japan Dec Core CPI Rises 3.0% Vs. Nov 2.7%
MNI (TOKYO) - The year-on-year rise of Japan's annual core consumer inflation rate accelerated to 3.0% in December as expected from November’s 2.7% due to higher prices of energy and foods excluding perishables, data released by the Ministry of Internal Affairs and Communications showed on Friday.
December’s index stayed above the Bank of Japan’s 2% target for the 33rd consecutive month.
The index was boosted by higher prices of energy (+10.1% vs. +6.0%) and food excluding perishables (4.4% vs. 4.2%).
The underlying inflation rate measured by the core-core CPI (excluding fresh food and energy) rose 2.4% y/y in December, unchanged from 2.4% in November.
Services prices, a key BOJ focus, rose 1.6% y/y in December vs. 1.5% in November.
BOJ officials maintained the view that services prices continued to rise steadily as businesses transferred high material and labour costs to retail prices, and they are focused on corporate price revisions and wage hikes in or after April. (See MNI POLICY: BOJ To Hike Unless Stocks Slide)