Japan’s inflation accelerated in May on the back of rising energy costs, a result that backs the case for the central bank to consider raising interest rates in coming months, although growth in a deeper measure of inflation that excludes fresh food and energy prices marked a ninth month of cooling and growth in service prices also slowed.
Consumer prices excluding fresh food rose 2.5% in May from a year ago, quickening from 2.2% in April, the internal affairs ministry said Friday. The reading came in a tad below economists’ consensus while staying at or above the Bank of Japan (BOJ)’s 2% target for a 26th month. Inflation was driven by a 14.7% jump in electricity prices.
The nationwide results were roughly in line with May figures for Tokyo, released three weeks ago.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.