Inflation & Prices
Japan’s Inflation Picks Up, Backing Case for BOJ Rate Hike
- Price gains led by sharp increase in electricity prices
- Processed-food price gains slow partly on base effects
WATCH: Japan’s inflation accelerated in May. Meanwhile, the US added Japan to its “monitoring list” for foreign-exchange practices. Brian Fowler reports.
Source: BloombergThis article is for subscribers only.
Japan’s inflation accelerated on the back of rising energy costs, a result that backs the case for the central bank to consider raising interest rates in coming months.
Consumer prices excluding fresh food rose 2.5% in May from a year ago, quickening from 2.2% in April, the ministry of internal affairs said Friday. The reading came in a tad below economists’ consensus while staying at or above the Bank of Japan’s 2% target for a 26th month. Inflation was driven by a 14.7% jump in electricity prices.