Japan inflation accelerates to 2.7 per cent in July

August 23, 2024 | 12:22

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Japanese inflation was slightly higher in July, with prices rising 2.7 per cent on-year compared with 2.6 per cent the month before, internal affairs ministry data showed Friday.

Japan inflation accelerates to 2.7 per cent in July

People wearing yukata taking pictures at Sensoji temple in Tokyo's Asakusa district on August 16, 2024, Philip FONG / AFP

The core Consumer Price Index reading, which excludes volatile fresh food prices, was in line with market expectations.

Increases in the cost of electricity and gas, processed food and car insurance premiums were among the areas contributing to the uptick, the ministry said in a statement.

While price increases at the petrol pump slowed, that was offset by rising electricity and natural gas fees, the ministry added.

Excluding fresh food and energy, Japanese prices rose 1.9 per cent in July -- also in line with expectations -- following a 2.2 per cent rise in June.

The data comes after the Bank of Japan's deputy governor earlier this month said officials would stick to their ultra-loose monetary policies given market volatility.

The key Nikkei 225 index surged more than 10 per cent on August 6, a day after tanking more than 12 per cent on concerns about a possible US recession and the stronger yen.

The BoJ late last month hiked interest rates for only the second time in 17 years -- indicating plans for more if the economy performs as officials expect.

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