Japan Core Consumer Prices Up 0.7 Pct in April

May 18, 2018

Tokyo- Japan's core consumer price index in April rose 0.7 pct from a year earlier, led partly by increases in gasoline and other energy prices, the Ministry of Internal Affairs and Communications said Friday.

The result compared with a median forecast of a 0.8 pct increase among 20 economic research institutes surveyed by Jiji Press.

The core CPI, which excludes often volatile fresh food prices, stood at 100.9 against 100 for the base year of 2015. It rose for the 16th straight month.

Energy prices were up by 5.3 pct, and food prices, excluding perishables, by 1.1 pct. Prices per volume rose for some yogurt and chocolate products as the amounts of content were reduced while their price tags were kept unchanged.

Prices of overseas package tours went up 9.8 pct reflecting robust demand for trips to North America and Asia during Japan's Golden Week holiday period from late April to early May.

By contrast, hotel fees dropped as the cherry blossom blooming season passed its peak in some regions.

Prices also fell for air conditioners and other consumer durables.

"Energy prices may continue increasing due to higher crude oil prices," a ministry official said.

"Some food makers are starting to reflect higher material costs in their product prices, so we'll pay close attention to such moves," the official added.

The overall CPI, including fresh food prices, rose 0.6 pct to 100.9 in April. The year-on-year growth slowed from the 1.1 pct in March as the surge in vegetable prices has come to an end.

The CPI excluding fresh food and energy prices was up 0.4 pct at 101.0. Jiji Press