Core consumer price inflation in Japan’s capital hit the highest in 40 years in November on higher energy cost and weaker yen, data released by the Ministry of Internal Affairs and Communications showed on Friday.
Tokyo’s core consumer price inflation that excludes fresh food rose to 3.6 percent in November from 3.4 percent in October. This was the highest since 1982 and above economists’ forecast of 3.5 percent.
Overall consumer prices advanced 3.8 percent annually, faster than the 3.5 percent rise in October.
The upshot is that the 3.7 percent national headline reading in October is unlikely to have been the peak as suspected, and previously 3.5 percent average headline inflation forecast for this quarter is now untenable, Capital Economics’ economist Darren Tay said.
Japan’s consumer price inflation continues to stay above the central bank’s target of 2 percent.
Elsewhere, data released by the Bank of Japan showed that services producer price inflation slowed to 1.8 percent in October from 2.1 percent a month ago. The rate was forecast to remain unchanged at 2.1 percent.
Month-on-month, the services PPI edged up 0.1 percent after rising 0.2 percent in September.