Tokyo’s Inflation Slows to 1.7 Pct in March

Tokyo, March 31 (Jiji Press)–Consumer inflation in central Tokyo slowed to 1.7 pct year-on-year in March, decelerating for the fourth straight month, the Japanese internal affairs ministry said Tuesday. The pace of growth in the core consumer price index in the capital’s densely populated 23 special wards remained below 2 pct for two months in a row because of a slowdown in food price hikes and government subsidies on electricity and gas bills. The core CPI, which strips out volatile fresh food prices, stood at 110.0 against the 2020 base of 100, rising for the 55th consecutive month. Energy prices dropped 7.5 pct. Of them, electricity and city gas fees fell 8.2 pct and 9.6 pct, respectively. Gasoline prices fell only 1 pct following the previous month’s 14.7 pct drop as price rises caused by the conflict in the Middle East more than offset the impact of the abolition of provisional gasoline tax surcharges. The data, collected in mid-March, does not reflect gasoline subsidies. Prices for food, excluding fresh food, rose 4.9 pct. Rice prices climbed 8.3 pct after an 18.2 pct rise in February. The overall CPI, which includes fresh food, rose 1.4 pct. The index, excluding fresh food and energy prices, gained 2.3 pct. In fiscal 2025, which ends Tuesday, the average core CPI rose 2.6 pct from the previous year following a 2.1 pct gain in fiscal 2024. END [Copyright The Jiji Press, Ltd.]