Japan’s Dec consumer inflation hits fresh 41-year high


TOKYO  – Japan’s core consumer prices in December rose 4 percent from a year earlier, double the central bank’s 2-percent target and hitting a fresh 41-year high, data showed on Friday, adding to recent growing signs of mounting inflationary pressure.

The data will likely keep alive market expectations that the Bank of Japan (BOJ) will soon end its yield control policy and allow interest rates to rise more, analysts say.

The increase in the core consumer price index (CPI), which excludes volatile fresh food but includes oil costs, matched a median market forecast and followed a 3.7- percent annual gain seen in November.

The annual rise in core CPI thus exceeded the BOJ’s 2 percent target for a ninth straight month.

Core-core CPI, which strips away both fresh food and energy costs, was 3 percent higher in December than a year earlier, accelerating from a 2.8- percent gain seen in November.

The BOJ kept monetary policy ultra-loose on Wednesday but raised its inflation forecasts in fresh quarterly projections, as companies continued to pass on higher raw material costs to households.

Many market players expect the central bank to phase out yield curve control, a policy under which it caps long-term interest rates around zero, when dovish governor Haruhiko Kuroda’s second, five-year term ends in April.

Subscribe to our business newsletter

Read Next

Don’t miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

For feedback, complaints, or inquiries, contact us.



Read original article here

Denial of responsibility! My droll is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment