Japan's core consumer prices rise 0.6% in February

[TOKYO] Japan's core consumer prices rose 0.6 per cent in February from a year earlier, data showed on Friday, the sixth straight monthly gain as global energy and food prices soar.

The tepid core increase, which excludes fresh food products, met market expectations and was the sharpest rise since February 2020.

Core data has been rising since September after showing no growth in August.

The latest figure still fell far short though of the Bank of Japan's goal of sustained two-per cent inflation, seen as key to spurring healthy economic growth in the world's third largest economy.

Japan's central bankers will end a two-day policy meeting later Friday, in which they are largely expected to maintain their current easy money programmes.

The internal affairs ministry said food prices and utility bills, driven up by higher energy costs, were behind the price increase.

But excluding fresh food and energy prices, Japan's consumer prices were still down 1.0 per cent in February, the 11th straight monthly fall, the ministry said.

Still, economists expect Japan's prices to continue to rise on high energy and commodity costs.

Further rises are likely "as some of the spike in energy prices due to the war in Ukraine comes through", Capital Economics said in a note. AFP