Japan Inflation Slows For Second Month In October Due To Energy Subsidies

Japan's core consumer prices rose 2.3% in October from a year earlier, marking the second consecutive month of slower growth as government subsidies helped curb rising energy costs, according to government data, Kyodo News reported.

The core-core CPI, which excludes both energy and fresh food to highlight underlying price trends, rose 2.3%, accelerating from a 2.1% increase in September. I Photo: TEPCO

The nationwide core consumer price index (CPI), which excludes volatile fresh food prices, followed a 2.4% increase in September and a 2.8% rise in August. Despite the slowdown, the inflation rate has stayed at or above the Bank of Japan's 2% target since April 2022.

The core-core CPI, which excludes both energy and fresh food to highlight underlying price trends, rose 2.3%, accelerating from a 2.1% increase in September, data from the Ministry of Internal Affairs and Communications showed.

“Excluding the effects of government subsidies, the data suggest that underlying inflation remains persistent,” said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute.

Fujishiro added that the data could prompt the Bank of Japan to raise interest rates at the appropriate time.