Japan’s key inflation gauge strengthened on the waning impact of government energy subsidies as the central bank continues to parse data before deciding on the timing of its next interest rate hike.
Consumer prices excluding fresh food rose 2.7% in November from a year earlier driven by higher energy costs, the internal affairs ministry reported Friday. That came in above a consensus estimate of 2.6%, and was higher than October’s 2.3% increase. An index excluding energy costs and fresh food prices advanced 2.4%, up from 2.3%.
Friday’s data supports the view among economists that inflation continues to develop in line with the Bank of Japan’s outlook and the bank will likely keep reducing the degree of its monetary easing with gradual interest rate hikes.
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