Tokyo, September 16 (Reuters) – Japan’s core consumer price inflation likely reached its highest level in nearly eight years in August, according to a Reuters poll, as firms passed on higher raw material costs, aided by a weaker yen. indicated that persistent price pressure in the economy was highlighted.
Excluding volatile fresh food prices, economists estimate the national core consumer price index (CPI), which includes energy, rose 2.7% year-on-year last month.
This was the fastest rise since November 2014 and follows the 2.4% annualized rise seen in July.
“Inflation seems to have picked up since July,” said Tsuyoshi Minami, chief economist at The Norinchukin Bank, adding that costs such as utility bills, processed food, accommodation and dining out are likely to have risen. rice field.
“The nationwide CPI for August is likely to show similar results as the movement to pass on higher import costs of raw materials continues,” he added.
Excluding the impact of past sales tax hikes, the expected core CPI rise will be the fastest in 31 years, Minami said.
The forecast also means that core CPI has outperformed the Bank of Japan’s (BOJ) 2% inflation target for the fifth straight month, attesting to the sustained pressure households are facing from rising prices. doing.
Opinion polls show that the BOJ has pledged to maintain its short-term interest rate target at minus 0.1%, and to guide the 10-year government bond yield to around 0% at its next policy meeting on September 21-22. rice field.
The Bank of Japan set an inflation target of 2% in 2013. It is the first year of current Governor Haruhiko Kuroda’s term, and he has repeatedly said the central bank will maintain its stimulus. .
The government will release CPI data on September 20th at 8:30 am (2330 GMT, September 19th), two days before the central bank ends its policy meeting.
(Reporting by Daniel Leussink, Editing by Kim Coghill)
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https://www.nasdaq.com/articles/poll-japan-august-core-inflation-seen-hitting-near-8-year-high POLL-Japan August core inflation near eight-year high