According to estimates, Japan’s core consumer price index (CPI) rose by 2.4% year on year in July. It accelerated to its highest level in almost eight years and was above the central bank’s inflation target of 2% for the four-month period.
“Electricity and gas prices started to re-accelerate, while price hikes are becoming more prevalent in goods such as processed foods,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
The nationwide core consumer price index, which excludes raw food costs but includes energy, was reported to have risen 2.4% last month from a year earlier. This would be the fastest increase since December 2014 and follows the 2.2% annual increase in June.
Leaving aside the period in which the indicator is distorted by the impact of higher sales taxes, the increase in the core CPI expected for July will be the highest since August 2008.
The next meeting of the Central Bank is scheduled for September 21 and 22.