ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Stronger consumer price inflation remains elusive in Japan

Prices rise for second straight year, but fall well short of price growth target

Consumer prices rose only modestly in the fiscal year ended in March.

TOKYO -- Japanese consumer prices rose for the second straight fiscal year in the year ended in March, data from the internal affairs ministry showed Friday. The figure marks modest progress in the central bank's effort to lift the nation out of deflation, though the rate of increase remains well short of its 2% inflation target.

Consumer prices excluding volatile fresh foods rose 0.8%, up from 0.7% the previous year. This is the tenth straight year core inflation stayed below 1%.

Consumer inflation reached 1.1% in fiscal 2008, but lost momentum following the global financial crisis. Inflation hit 2.9% in fiscal 2014 because the sales tax rate was hiked to 8% from 5%. Excluding the effect of the tax increase, the pace of inflation stayed below 1%. 

Higher beer prices drove a 1% increase in the price of eating out in fiscal 2018, lifting inflation more broadly. The prices for packaged tours also rose 9.9%, contributing to the modest consumer price increases. 

On the other hand, prices decreases for cell phones damped overall inflation. Prices rose for 54.7% of the surveyed items.

For the month of March, core inflation rose 0.8%, marking the 27th straight month of year-on-year increase.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media