Japan’s core inflation slows in September on fuel subsidies

JAPAN’S core consumer prices rose 2.4 per cent in September from a year earlier, data showed on Friday (Oct 18), slowing from the previous month due to the roll-out of temporary government subsidies to curb energy prices.

The increase in the core consumer price index, which includes oil products but excludes fresh food prices, compared with a median market forecast for a 2.3 per cent gain and followed a 2.8 per cent rise in August.

An index that strips away the effect of fuel and fresh food prices rose 2.1 per cent in September from a year earlier, after a 2.0 per cent gain in August, the data showed.

The data will be among factors the Bank of Japan (BOJ) will scrutinise at its two-day policy meeting ending on Oct 31.

Japan’s core consumer inflation has exceeded the BOJ’s 2 per cent target for well over two years, prodding the central bank to end negative rates in March and raise short-term rates to 0.25 per cent in July.

BOJ governor Kazuo Ueda has said the bank will keep raising rates if inflation remains on track to stably hit 2 per cent as it projects. But he stressed the bank will spend time gauging how global economic uncertainties affect Japan’s fragile recovery. REUTERS