Japan’s core inflation accelerated to 1.8% in March

Japan’s core inflation accelerated to 1.8% in March

The year-on-year rise in consumer prices jumped from 1.6% in February, and was higher than market expectations of 1.7%.

Japan’s central bank warned last month that it expected inflation to increase because of the ‘recent rise in crude oil prices’ caused by the Middle East war. (EPA Images pic)
TOKYO:
Japan’s core inflation accelerated to 1.8% in March, government data showed Friday, largely driven by rising food prices such as rice.

Prime Minister Sanae Takaichi — who was appointed leader in October — has promised to fight inflation as a major priority, with public discontent over rising prices a contributor to the downfall of her two predecessors.

The year-on-year rise in consumer prices, which excludes volatile fresh food, jumped from 1.6% in February, and was higher than market expectations of 1.7%.

Japan’s central bank warned last month that it expected inflation to increase because of the “recent rise in crude oil prices” caused by the Middle East war.

Friday’s data comes after inflation fell in February to its lowest level since 2022.

But gasoline prices were 5.4% down in March after the government began an emergency subsidy programme to drive down the cost.

Japan depends on the Middle East for around 95% of its oil imports.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.