Tokyo: Japan’s core inflation slowed for a second straight month in July, yet it remained above the central bank’s 2% target. The nationwide core consumer price index (CPI), which excludes fresh food items, rose 3.1% in July from a year earlier. This figure was slightly higher than the median market forecast of a 3.0% gain, as revealed by government data on Friday.
According to Emirates News Agency, the increase in core CPI was smaller than the 3.3% rise seen in June. This slowdown is attributed largely to the base effect stemming from last year’s surge in energy prices. Notably, energy prices fell by 0.3%, marking the first year-on-year drop since March of the previous year.
While energy prices saw a decrease, food inflation, excluding volatile fresh products, experienced an uptick. It accelerated to 8.3% in July, up from 8.2% in June. Despite the slowdown in overall core inflation, the persistent rise in food prices poses ongoing challenges for consumers.