Japan’s core annual consumer inflation beat the central bank’s target for the second month in a row in May, data showed on Friday, highlighting intensifying pressure on the country’s fragile economy from rising global materials costs. -cousins.
The data challenges the Bank of Japan’s view that the recent rise in prices is temporary and does not justify the withdrawal of monetary stimulus.
But with wage growth subdued, many analysts expect the central bank to remain firmly focused on stimulating the economy rather than fighting inflation with interest rate hikes.
The core national consumer price index, which excludes volatile fresh food but includes fuel costs, rose 2.1% in May from a year earlier, the data showed, in line with the market forecast.
The result was above the Bank of Japan’s 2% target for a second straight month, after rising 2.1% in April, which had been the strongest pace in seven years.
“Food prices are rising significantly, even as wage growth remains sluggish. This can hurt consumption and make retailers hesitant to pass more costs on to consumers,” said Takumi Tsunoda, a senior economist at the Shinkin Central Bank Research Institute.
“I don’t think core consumer inflation will hit 3% unless a wider range of prices for everyday goods and services increases.”
Source: CNN Brasil
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