Gains in Japan’s key consumer prices failed to accelerate toward the Bank of Japan’s target in December, highlighting the ongoing weakness in the economy’s inflation pulse in stark contrast to its global peers.
Consumer prices excluding fresh food rose 0.5% in December from a year earlier, with cheaper household appliances and smaller gains in hotel prices outweighing the impact of higher energy costs, the internal affairs ministry said Friday. Economists had expected a 0.6% gain.
The subdued inflation reading is likely to further cool speculation that the BOJ may take steps to adjust policy in light of price increases. Gov. Haruhiko Kuroda said earlier this week that the start of a normalization of policy is "absolutely not” on the table.