Core consumer prices log 1st rise in 2 years in 2017

January 26, 2018

Tokyo- Japan's average core consumer price index for 2017 rose 0.5 percent from the previous year, marking the first growth in two years, government data showed Friday.

The growth mainly reflected rises in gasoline prices and electricity fees on the back of higher crude oil prices.

The core CPI, which excludes volatile fresh food prices, stood at 100.2 against 100 for the base year of 2015, the Ministry of Internal Affairs and Communications said.

Other factors included tighter regulations on excessive discounts on alcoholic beverages that took effect in June last year and a rise in accommodation fees amid growth in the number of foreign visitors to Japan, as well as a hike in out-of-packet payments of medical fees by certain elderly people.

By contrast, mobile phone communications fees declined as major carriers introduced low-cost subscription plans.

In December alone, the core CPI increased 0.9 pct from a year before to 100.7, up for the 12th straight month, the ministry said.

The December result matched the median forecast among 21 economic research institutes surveyed by Jiji Press.

Energy prices increased 7.7 percent and food prices, excluding perishables, rose 1.2 percent.

But prices of durable goods for education and entertainment, such as television sets, dropped 1.5 percent.

Excluding fresh food and energy prices, the CPI rose 0.3 percent to 101.0. The overall CPI, including these items, grew 1.0 percent to 101.2, mainly pushed up by a surge in vegetable prices.

For Tokyo's densely populated 23 wards, the core CPI stood at 99.8 in January, up 0.7 pct from a year before. Jiji Press