Japan returns to core inflation for first time since 2015
Mar 05 2017
Inflation has recorded increase due to the continuous hike in oil prices during last three months.
Energy prices were behind the increase, with petrol prices jumping 9.2 per cent over the year.
Core CPI, which excludes fresh food costs, added 0.1 percent on year - topping forecasts for a flat reading following the 0.2 percent decline in the previous month.
The core CPI for the Tokyo metropolitan area-which is less affected by gasoline costs than nationwide price data--fell 0.3% in February.
Meanwhile, inflation has gone up by 3.9 percent during first eight months (July-February) of the ongoing financial year over a year ago. The rise was the first since a 0.1% increase in December 2015.
The annual inflation target for the current fiscal year is 6pc. On a MoM basis, Core NFNE increased by 0.2 percent in February 2017 compared to an increase of 1.1 percent in the previous month, and an increase of 0.2 percent in the corresponding month of past year i.e. February 2016, according to the FBS.
Meanwhile, the Sensitive Price Index edged up 1.2pc and the Wholesale Price Index rose 3.46pc in February.
Food and non-alcoholic beverages prices have increased by 3.1 percent. Recreational charges and those related to culture went up by 1.29 percent in the period under review, while amounts charged by restaurants and hotels increased by 3.95 percent in February 2017 as compared to the same month past year. It witnessed an increase of 0.3pc over the preceding month.
The education and health indices rose 11.33pc and 14.11pc, respectively, in February on a year-on-year basis.
Among non-food groups, motor fuel prices went up 3.12pc, medical tests 1.64pc, doctor's fee 1.6pc, personal equipment 1.34pc and personal care 1pc.
Energy prices overall continued a downward trajectory, falling 0.8 percent in the recording period, with the rate of decline slowing from 4.4 percent logged in December.