Tokyo inflation extends for 23rd consecutive month

On July 28, the Japanese Ministry of Internal Affairs , Communications and Information announced a report stating that the composite consumer price index, excluding fluctuations in fresh food prices, in Tokyo districts this July increased by 3% compared to June, recording a slowing increase.

The Tokyo consumer price index is considered a benchmark for forecasting inflation trends across Japan. The July results showed Tokyo inflation for the 23rd consecutive month, as prices of food and daily necessities rose and remained above the 2% target set by the Bank of Japan.

The composite index, which excludes fresh produce and energy, rose 4% month-on-month after rising 3.8% in June 2023, according to the Ministry of Internal Affairs and Communications. The composite index, which includes fresh produce and energy, rose 3.2%, the same as in June 2023.

By commodity category, energy prices fell 11.9%, with gas prices down 16.7% and electricity prices down 9.1%.

Food prices, excluding fresh produce, rose 9%, after rising 8.9% in June 2023, the highest in more than 47 years. Notably, egg prices rose 31.4% and hamburger prices rose 14.5%.

Accommodation prices increased by 15.1%, after increasing by 5.5% in June 2023. This was mainly due to the increase in foreign visitors to Japan and the Japanese government's tourism support policy that will end in each locality from July 2023.

Meanwhile, according to data released a few days ago, Japan's core inflation index (excluding fresh food prices) in June edged up 0.1% compared to May, at 3.3%. The main reason was the sharp increase in electricity prices.

Meanwhile, US inflation was 3% in June. Thus, for the first time in 8 years, Japanese inflation exceeded that of the US.

The Japanese government also raised its overall inflation forecast for fiscal 2023-2024 to 2.6%. The Bank of Japan (BOJ) governor stressed that the agency is ready to maintain its ultra-easy monetary policy until inflation stabilizes and is accompanied by rising wages.

The BOJ expects core consumer inflation to fall below 2% in September or October, although persistently rising prices have cast doubt on that view.

Minh Hoa (t/h according to VTV, Vietnam+)

Source: https://www.nguoiduatin.vn/lam-phat-tai-tokyo-keo-dai-thang-thu-23-lien-tiep-a619340.html