According to data released on Friday, inflation in Japan reached its highest level since 1981 in November (December 23). A portion of the inflation is caused by rising energy prices.
Core consumer prices, which do not include volatile fresh food costs, rose 3.7% in November compared to the same month last year.
The processed food items experienced the highest price increase. Electricity and durable products like air conditioners were also more expensive.
The November figure is significantly lower than the extraordinarily high levels that have alarmed Americans, Britons, and others while still exceeding the Bank of Japan’s long-term objective of 2.0 percent.
Even with fresh food and energy excluded, the index increased by 2.8%.
‘Although low by international standards, Japanese consumer price inflation at three percent to four percent is high enough to feel uncomfortable with stagnant wage growth,’ wrote Sarah Tan, economist at Moody’s Analytics, in a note.
The headline core consumer price index (CPI) has risen consistently since the beginning of the year, putting pressure on the Bank of Japan to tweak its longstanding monetary easing policies.
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