Inflation in Japan has risen to 40-year high
2022.12.16 00:09
Inflation in Japan has risen to 40-year high
Budrigannews.com – A Reuters poll revealed that firms increasingly passed on high energy, food, and raw material costs to households, resulting in Japan’s nationwide consumer price inflation reaching a 40-year high in November.
The poll predicts that November’s nationwide core consumer price index (CPI), which excludes volatile prices for fresh food but includes energy costs, will likely rise by 3.7% from the previous year.
That would be the greatest increase since December 1981, when it was 4.0%, and it would be higher than the monthly increase of 3.6%.
Economists at Dai-ichi Life Research Institute stated, “While the rate of increase in energy prices is slowing, the reason is that continuing price hikes of food items are pushing up (prices),” adding that businesses were passing on higher costs to consumers more broadly.
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On Dec. 22, the CPI data will be made available by the government at 23:30 GMT.
The Bank of Japan (BOJ) has maintained its ultra-easy policy in spite of the price pressures, which are particularly challenging those with low incomes. Instead, the BOJ has joined a global trend of aggressively raising interest rates.
According to the poll, the BOJ was also expected to keep its short-term interest rate target at -0.1% and its pledge to keep 10-year government bond yields around 0% at its next policy meeting on December 19 and 20.
