News On Japan

Japan Inflation Stays Below 2% For Fourth Straight Month

TOKYO - Japan's nationwide consumer price index rose 1.4% in May from a year earlier, staying below 2% for the fourth straight month as lower rice, gasoline, utility and school tuition costs helped curb the overall increase.

The Ministry of Internal Affairs and Communications said the core index, which excludes fresh food because of its sharp price swings, marked its 57th consecutive month of year-on-year growth, reflecting continued price increases for food and other items.

Among major food categories, coffee beans rose 37.9%, chocolate climbed 25.8%, and pork increased 4.8%. Rice, however, turned negative for the first time in three years and six months, falling 4.9%.

In other categories, mobile phone communication fees rose 11.0%, while hotel charges increased 4.8% as inbound tourism demand remained strong.

Private high school tuition fell 68.8% due to national subsidies for high school tuition that began in April.

Gasoline prices declined 7.0%, city gas charges fell 4.1%, and electricity bills dropped 2.4%, reflecting the abolition of the provisional tax rate and government subsidies, helping to restrain the overall rise in consumer prices.

Source: TBS

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