TOPSHOT – Customers enter an electronics store in the Tokyo Akihabara district on January 12, 2024.
Richard A. Brooks | AFP | Getty images
Japan’s basic inflation accelerated at 3.5% in April, government data showed on Friday, reinforced in part by increasing rice prices, while the Central Bank considers the break in its rate increase in rates to assess the impact of American prices.
The figure of basic inflation, which removes the prices of fresh food, was higher than the expectations of 3.4%, according to the economists interviewed by Reuters, marking the highest level since January 2023.
The inflation of the titles increased by 3.6% compared to a year ago, stable compared to the previous month and remaining above the target of 2% of the bank of the bank for more than three years.
The governor of the Bank of Japan, Kazuo Ueda, reported his position on the intention of increasing prices given the price trends, while citing the need to closely monitor the effects of American prices.
Japan has been struggling with rice prices in recent weeks. The average price in 1,000 supermarkets across the country would have continued to reach record peaks, with prices for a bag of 5 kilograms of rice hiking from 54 yen from the previous week to 4,268 yen ($ 29.63) to May 11.
Basic inflation is expected to facilitate the coming months due to the drop in crude oil prices and Yen’s appreciation, said Masato Koike, an economist at Sompo Institute Plus.
As the first administration of Trump shows, an excess supply of food from American prices could lead to a drop in food prices, said Koike, adding that the resumption of government grants for electricity and gas bills in summer will also create downward pressure on inflation.
The Japanese Yen reinforced 0.15% to 143.80 compared to the US dollar after the press release.
