Core consumer inflation in Japan remained above the central bank’s 2% target for the third straight month in June as the economy faces pressure from high global raw material prices that have pushed up the country’s cost of imports.
Rising consumer prices challenge the Bank of Japan’s view that recent increases in the world’s third-largest economy will remain temporary, even as households worry about higher living costs.
The core national consumer price index, which excludes volatile fresh food costs but includes energy, rose 2.2% in June from a year earlier, government data showed.
The data, in line with market expectations, meant that inflation was above the central bank’s 2% target for the third consecutive month, after rising 2.1% in May and April.
Household budgets, especially among low-income people, have faced pressure from higher food prices that are likely to dampen appetite for post-pandemic spending, said Takeshi Minami, chief economist at the Norinchukin Research Institute.
“The recovery will be quite slow,” added Minami.
“The momentum should have been strong if nothing had happened, but the impact of price increases and a seventh wave of Covid-19 is suppressing it considerably.”
Source: CNN Brasil
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