Arabic version: ارتفاع التضخم الأساسي في اليابان مع امتداد تكاليف الطاقة

According to Cnbc, Japan’s core inflation was 1.6% in June, rising for the first time since March and matching the forecast of economists polled by Reuters. The measure excludes fresh food prices. Higher oil prices were beginning to spill into the wider economy, following a period in which government subsidies had cushioned consumers from energy costs.

Headline inflation rose to 1.7% from 1.5% in May. The core-core rate, which excludes fresh food and energy, slipped to 1.7%, its lowest level since August 2022. Energy prices declined 0.1% year on year in June, a smaller drop than the 2.5% fall recorded in May. Charges for fuel, light and water were flat, ending six consecutive months of declines.

Businesses have faced sharper cost increases as energy prices climb. Japan’s producer price index reached 7.1% in June, its highest level since March 2023. Petroleum imports by value surged more than 59% year on year, according to trade data released Wednesday. Japan imports more than 87% of its energy needs, according to the International Energy Agency.

Historic weakness in the yen has increased import costs and raised concerns over imported inflation. The yen was flat at 163.82 against the dollar on Friday, while the Nikkei 225 was 2.14% lower after the inflation data. Reuters reported Wednesday that the Bank of Japan remained alert to upside inflation risks, with some officials seeing a possibility of faster rate increases if fuel costs and yen-related price pressures accelerate inflation.