Japan adopts stronger view on prices for 1st time in 3 years

March 16, 2018

Tokyo- The Japanese government on Friday adopted a stronger view on consumer prices for the first time in nearly three years while keeping intact its overall assessment of the country's economy.

"The Japanese economy is recovering at a moderate pace," the government said in a monthly economic report submitted to the day's meeting of relevant ministers.

"Consumer prices are rising moderately in recent months," the government said in the March report, showing a more bullish view on consumer prices for the first time since May 2015. Last month, the government said the prices were "flat."

The government used the phrase, "rising moderately," to describe the price situation for the first time in 22 months.

The stronger view reflected a recent increase in the consumer price index that excludes often volatile fresh food and energy prices, a Cabinet Office official said.

The closely followed index started to rise year on year in summer last year. For January this year, the index posted a 0.4 percent rise.

"Price hikes were seen in a wide range of goods and services" in recent months, including vehicle tires and accommodation fees, the official said, citing wage increases due to labor shortages and raw material price rises as major driving forces.

The government maintained its assessments for all other categories. Private consumption and exports are "picking up," business investment and industrial production are "increasing moderately," and the employment situation is "improving steadily," according to the March report.

Looking ahead, the government kept unchanged its view that the domestic economy is expected to stay on a recovery track. Jiji Press