Japan core consumer prices up 2.2 percent in June

Agence France-Presse

Posted at Jul 22 2022 10:24 AM

People stroll through market stalls at a shopping street in Sugamo district in Tokyo, Japan, June 24, 2022. Franck Robichon, EPA-EFE 
People stroll through market stalls at a shopping street in Sugamo district in Tokyo, Japan, June 24, 2022. Franck Robichon, EPA-EFE 

TOKYO — Japan's core consumer prices for items excluding fresh products rose 2.2 percent in June from a year earlier, driven by energy costs, government data showed Friday.

Excluding energy, the increase was just 1 percent compared to a year earlier, according to data released by the interior affairs ministry.

The June inflation figures were in line with expectations and mark the third consecutive month that the reading has come in over 2 percent, after 2.1 percent increases in April and May.

Japan's central bank has a longstanding goal of reaching 2 percent inflation, but it regards the current price increases as temporary and linked to soaring energy costs driven by the war in Ukraine.

As a result, it has maintained its monetary easing policies at a time when central banks elsewhere are hiking rates to tackle inflation.

On Thursday, the bank raised its inflation forecasts, projecting 2.3 percent for the fiscal year 2022 and 2023, up from a previous expectation of 1.9 percent.

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