Core consumer prices jump in February

March 23, 2018

Tokyo- Japan's core consumer prices rose at their fastest pace in over three years in February as higher crude oil prices lifted the cost of gasoline and electricity, government data showed Friday.

The core consumer price index, which excludes often volatile fresh food prices, rose 1.0 percent from a year before to 100.6 against 100 for the base year of 2015, marking its 14th consecutive month of rise, the internal affairs ministry said.

February's growth in the core CPI represented its biggest increase since the 1.1 percent rise in August 2014, excluding the effects of the April 2014 consumption tax hike.

Consumer prices are rising moderately, a ministry official said, noting that a rise in travel and other service fees is solid in particular. The official said the ministry will closely monitor whether consumer prices will continue increasing.

In February, energy prices, including electricity fees, jumped 7.0 percent, and prices of food, excluding fresh food, grew 1.2 percent.

Overseas package tour fees rose, on strong demand for trips to South Korea to watch the Pyeongchang Winter Olympics. Hotel fees increased, reflecting a rise in the number of foreign travelers to Japan.

Prices of smartphones and other mobile phone handsets rose after they declined a year before due to discounts by some major carriers.

Medical care fees also rose.

By contrast, mobile phone communication fees and prices of such household durable goods as cleaners and refrigerators declined.

The overall CPI, including fresh food, rose 1.5 percent, as bad weather lifted vegetable prices sharply. Jiji Press