Japan's Core Inflation Slows To 2.2% In April

Japan's core consumer prices rose 2.2% in April from a year earlier, but the pace of increase slowed for the second straight month as price pressure on food and services eased, government data showed, Kyodo News reported.

Food prices rose 3.5%, moderating from 4.6% in March.

The increase in the nationwide core consumer price index, excluding volatile fresh food, followed a 2.6% gain in March, and it remained at or above the Bank of Japan's 2% target for the 25th straight month.

Core CPI, which is seen as a better reflection of underlying price trends as volatile energy and fresh food prices are excluded, rose 2.4%, the slowest pace of increase since September 2022.

It decelerated from a 2.9% increase in March, Mainichi Japan also reported.

While core inflation has slowed since the most recent peak of 4.2% in January 2023, it still remains relatively high for a nation that battled deflation for decades. Higher prices are one of the major factors behind weak consumption, which caused the economy to shrink for the first time in two quarters in the first three months of 2024.

Food prices rose 3.5%, moderating from 4.6% in March. Accommodation fees increased 18.8%, amid a revival of inbound tourism, the Ministry of Internal Affairs and Communications data showed.