Japan's Core CPI Up 3% In Dec. 2024 As Energy Subsidies End

Japan's core consumer prices rose by 3% in December 2024 compared to the previous year, marking the fastest increase in over a year as government subsidies for utility bills ended, the Internal Affairs Ministry reported, according to Kyodo News.

The release of the latest CPI data came just hours before the conclusion of the Bank of Japan's two-day policy meeting, where the central bank decided to raise its policy rate.

The nationwide core consumer price index (CPI), excluding volatile fresh food, followed a 2.7% rise in November. The inflation rate has stayed at or above the Bank of Japan's 2% target since April 2022.

Meanwhile, the core-core CPI, which excludes both energy and fresh food to reflect underlying price trends, increased by 2.4% year-on-year, unchanged from the previous month, the Ministry of Internal Affairs and Communications stated.

The release of the latest CPI data came just hours before the conclusion of the Bank of Japan's two-day policy meeting, where the central bank decided to raise its policy rate to 0.5% from 0.25%.

BOJ Chief Kazuo Ueda reiterated that the bank would continue tightening monetary policy if the economy and prices align with expectations, as reported by Mainichi Shimbun.