TOKYO (Reuters) – Japan’s core consumer inflation likely rose to a near eight-year high in August, a Reuters poll showed, as companies ignored rising raw material costs due to a weaker yen, underscoring persistent tensions in the economy Price Pressures
Economists estimate that the national core consumer price index (CPI), which excludes volatile fresh food prices but includes energy, rose 2.7% last month from a year earlier.
This would be the fastest gain since November 2014 and follow July’s 2.4% annual increase.
“Inflation seems to have been pushed up from July,” said Takeshi Minami, chief economist at the Agriculture, Forestry and China Institute of Finance, adding that utilities, processed food, overnight accommodation and going out Expenses such as meals may rise.
“A similar result is likely to be seen in the national CPI in August due to the continued rise in raw material import costs,” he added.
Core CPI expected to rise Minami said if the impact of past sales tax hikes is stripped out, it will be the fastest in 31 years.
The forecast also implies that core CPI is expected to remain unchanged above the Bank of Japan’s (BOJ) 2% inflation target for the fifth consecutive month, proving that households have been facing persistent pressure from rising prices.
The Bank of Japan is expected to keep its short long-term interest rate target at -0.1% and has committed to 20 at its next policy meeting in September annual government bond yields are guided to around 0% 10-22, the vote also shows.
In the first year of current Governor Haruhiko Kuroda’s tenure, the Bank of Japan set the 2013 He has repeatedly said the central bank will maintain its stimulus because any cost-push inflation rise is temporary.
The government will release CPI data 22 at 8:00 am on September 8 22 (2330 GMT, September 19)), two days before the end of the central bank’s policy meeting.
