Monday, November 18, 2024

Japan’s core inflation slows in September on fuel subsidies

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By Leika Kihara

TOKYO (Reuters) – Japan’s core consumer prices rose 2.4% in September from a year earlier, data showed on Friday, slowing from the previous month due to the roll-out of temporary government subsidies to curb energy prices.

The increase in the core consumer price index (CPI), which includes oil products but excludes fresh food prices, compared with a median market forecast for a 2.3% gain and followed a 2.8% rise in August.

An index that strips away the effect of fuel and fresh food prices rose 2.1% in September from a year earlier, after a 2.0% gain in August, the data showed.

The data will be among factors the Bank of Japan will scrutinise at its two-day policy meeting ending on Oct. 31.

Japan’s core consumer inflation has exceeded the BOJ’s 2% target for well over two years, prodding the central bank to end negative rates in March and raise short-term rates to 0.25% in July.

BOJ Governor Kazuo Ueda has said the bank will keep raising rates if inflation remains on track to stably hit 2% as it projects. But he stressed the bank will spend time gauging how global economic uncertainties affect Japan’s fragile recovery.

(Reporting by Leika Kihara; Editing by Sonali Paul)

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