Consumer prices in Tokyo increase fastest in 7 years

This number marked the growth rate Consumer price index the fastest annual rate in the past seven years, data released on May 6 by the Japanese government showed.

According to the house Japanese economyreality inflationary An increase, mainly due to food costs and the increasingly lackluster impact of previous mobile phone fee cuts, should lead to a rapid price increase to the Central Bank’s 2% target. country in the coming months.

“National core inflation is likely to rise above 2% in April-June. Meanwhile, the index may not continue to continue,” said Takumi Tsunoda, senior economist at Shinkin Bank Research Institute. growing faster because the rate of energy price inflation is slowing down.

The rise in Tokyo’s core consumer price index (CPI) was faster than market forecasts by 1.8 percent on average and followed a 0.8 percent gain in March. The index does not include fresh foods. life, is a variable element, but includes energy items. This was the fastest increase since March 2015, when the index rose 2.2%.

Tokyo’s overall CPI (which includes the cost of fresh food) rose 2.5% in April from a year ago, the fastest increase since October 2014.

The dwindling effect of the mobile phone fee cuts in 2021 pushed the overall CPI up 0.80 points, while the price of fresh food pushed it up 0.17 points, the data showed. whether show.

Takeaway packages of sushi, burgers and sandwiches in general saw the biggest price increases among food items in April, according to a Japanese government official.

Energy prices in Tokyo rose 24.6% year-on-year in April in Tokyo, slower than in March, thanks to the government’s fuel subsidy programs aimed at reducing the cost of gasoline and other energy. .

Core CPI in Tokyo excluding fresh food and energy commodities rose 0.8% in April, the first increase since March 2021.

The Bank of Japan (BOJ) last week raised its forecast for this year’s inflation rate but left its ultra-loose monetary policy unchanged, emphasizing its determination to maintain stimulus, support until inflationary pressures are accompanied by higher wages and stronger demand.

“There is a growing risk of a downward economic spiral starting to unfold, in which consumer spending is dragged down by a weak yen,” said Takahide Kiuchi, executive economist at Nomura Research Institute. and prices rise, reducing workers’ real wages.

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