Japan Consumer Price Inflation Slows below 2 Pct

Tokyo, March 24 (Jiji Press)–Japan’s consumer price inflation decelerated for the third straight month in February, falling below 2 pct for the first time since March 2022, as government subsidies and a gasoline tax cut pushed down energy prices, a government report showed Tuesday. The core consumer price index, which excludes volatile fresh food prices, rose 1.6 pct from a year before to 111.4 against the 2020 base of 100, marking the 54th consecutive month of growth, according to the internal affairs ministry. Energy prices dropped 9.1 pct, faster than the previous month’s 5.2 pct, with gasoline prices down 14.9 pct, electricity rates down 8.0 pct and city gas costs down 8.2 pct. Food prices, excluding fresh food prices, climbed 5.7 pct, but the pace of growth shrank for the seventh successive month. Rice prices jumped 17.1 pct, still slower than 27.9 pct in January. Chocolate price soared 26.9 pct due to rising ingredient costs. The overall CPI, which includes fresh food prices, rose 1.3 pct. The narrower index, which excludes fresh food and energy prices, climbed 2.5 pct. In March, crude oil prices began to surge amid escalating tensions in the Middle East, boosting gasoline prices. When asked how this could impact consumer prices, a ministry official said, “We can’t answer at the moment.” END [Copyright The Jiji Press, Ltd.]