The fundamental inflation in the capital of Japan slows down but remains above the battle of the goal
Makiko Yamazaki and Satoshi Sugiyama
Tokyo (Reuters) -Particular prices in Japan’s capital increased in February 2.2% in February earlier, the data showed on Friday, slowing down for the first time after four months due to the revived energy subsidies, but remaining significantly above the goal of 2% of the central bank.
A persistent high inflation is likely to support the Central Bank case to continue his campaign to encourage monetary policy.
“Slow down mainly reflects renewed subsidies for suppressing electricity and gas accounts, but the fundamental trend has not changed with food prices that have remained high,” said Kazutak Maeda, economist Meiji Yasuda Research Institute.
“This fundamental trend will justify the further increase in the rate by battle,” he added.
Increasing the basic consumer prices index (CPI), which excludes the volatile costs of fresh food, was slower than the medium market forecast of 2.3% and 2.5% of the gain in January.
A separate index that eliminates the effects of fresh food and fuel costs, which the battle watched carefully as a wider indicator of pricing trends, increased in February 1.9% in February earlier, progressing the same pace as the previous month.
Data on Tokyo inflation are considered to be a leading indicator of trends throughout the country.
The government returned subsidies for electricity and gas in January, which was reflected in accounts this month.
The pressure on the growth of the price could be increased again in a few months as the government plans to abolish subsidies by the end of March.
Food prices have also increased in recent months, which has encouraged the Government to order the release of rice in the agricultural cooperatives to reduce costs.
The recent yen power can help reduce import costs, but it usually takes several months for the movement of foreign exchange course to reflect prices.
Meanwhile, Tomoyuki Ot, the chief economist of Mizuho Research & Technologies, noted that the prices of non -solid services are slow to increase.
“It shows that higher costs of work and energy have not been fully shifted to prices,” he said.
Services prices in non -sectors increased by 0.8% in February, more slower than 0.9% in January.
Separate data from the Ministry of Economy, Trade and Industry showed that Japanese factory production fell 1.1% compared to the previous month in January, approximately in accordance with the mean market forecast for a 1.2% decline.
Management -explored manufacturers expect a seasonally adapted product to increase 5.0% in February, and is 2.0% in March.
The battle ended the decade of huge monetary stimuli last year and increased its short -term interest rate at 0.5% with 0.25% in January, according to Japan that the peak of a sustainable hit at 2% inflation goal.
