Tokyo, Japan (4E) – The core consumer-price index (CPI) in Japan’s climbed 1.2 percent in November from the previous year, the fastest pace in five years and the latest sign that the country is steadily moving away from its deflationary cycle.
The better-than-anticipated figure is welcome news for Prime Minister Shinzo Abe’s government and the Bank of Japan, which considers higher inflation as key in the economic recovery effort under the so-called Abenomics.
Official data released Friday, along with separate data showing better employment situation, suggest the economy continues to be relatively strong, despite a subdued 0.2 percent growth in household spending from the previous year. Other data showed a small 0.1 percent increase in November industrial production from the previous month, though the government maintains its assessment that output is growing.
Tokyo consumer prices in the Tokyo region, viewed as a key indicator for nationwide price trends, was higher 0.9 percent on year in December, matching expectations and unchanged from the reading in November. Tokyo core CPI increased 0.7 percent from a year ago, in line with expectations and higher than 0.6 percent in November.
By individual component, prices of fuel gained 3.8 percent, while prices of food climbed 1.7 percent, cost of recreation rose 1.5 percent and cost of transportation gained 1.0 percent.