Consumer inflation in Japan surges by 2.8 percent last month
Date
6/23/2024 5:33:19 AM
(MENAFN) Japan's consumer inflation surged to a three-month high of 2.8 percent annually in May, driven primarily by escalating electricity costs, as reported in official data released by the Internal Affairs Ministry on Friday. This marked an increase from April's inflation rate of 2.5 percent.
The sharp rise in electricity prices, soaring by 14.7 percent year-on-year in May, was attributed to the government's phase-out of utility subsidies. Core inflation, which excludes volatile fresh food prices, came in slightly lower than anticipated at 2.5 percent, compared to 2.2 percent in the previous month. Notably, this figure has surpassed the Bank of Japan's 2 percent target for the 26th consecutive month.
In contrast, a more refined measure of inflation, known as "core-core" inflation, which excludes both fresh food and energy prices, showed a moderation for the ninth consecutive month. It eased to 2.1 percent in May, down from 2.5 percent in the previous month.
On a monthly basis, the consumer price index rose by 0.5 percent in May, marking the fastest increase since October of the previous year. These developments underscore the complex dynamics influencing Japan's inflationary trends, reflecting both temporary factors such as energy price fluctuations and more enduring economic factors impacting price stability.
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