TOKYO, Nov 17 (Reuters) – Core consumer prices (core CPI) in Japan likely accelerated further in October to remain above the Bank of Japan’s 2% target for the 19th consecutive month (BoJ), shows a Reuters survey of 17 economists published Friday.
The core CPI, which excludes volatile fresh food, likely rose 3.0% in October from a year ago, according to economists’ median estimate, compared with a 2.8% rise in September.
The core CPI, which reached a peak of 4.2% in January, fell below the 3% threshold for the first time in more than a year in September, under the effect of a drop in prices charged by community service companies, itself a consequence of the decline in oil prices with a time lag.
“The year-on-year pace of (price) growth is expected to accelerate in October as government subsidies on electricity and gas bills have been reduced,” said Shumpei Fujita, an economist at Mitsubishi UFJ Research and Consulting.
Official consumer price data for October will be released on November 23 at 11:30 p.m. GMT.
BOJ Governor Kazuo Ueda said on Friday that the central bank would discuss a strategy to exit its ultra-accommodative monetary policy when the targeted inflation target was sustainably achieved.
The Japanese government earlier this month outlined a package of measures aimed at mitigating the effects of inflation on the economy, which will result in spending of more than 17 trillion yen ($113 billion or 104 billion). euros).
Data published on Wednesday showed that the gross domestic product (GDP) of the archipelago had contracted between July and September, by 2.1%, ending two consecutive quarters of expansion, due in particular to the weakness of consumption and exports. This data suggests that rising inflation is weighing on household spending. (Report by Kaori Kaneko; French version by Claude Chendjou, edited by Blandine Hénault)
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