Japan's core consumer prices hit 7-year high in May

The data shows that Japan's core consumer prices rose by 2.1 per cent in May, the second consecutive month jump of a level not seen in seven years. The core consumer price index, which excludes fresh food, jumped 2.1 per cent year-on-year in May, according to figures released by the internal affairs ministry.

The figure has increased by 2.1 per cent in April, the first time since March 2015 that it has exceeded the 2.0 per cent set by the Bank of Japan BoJ as its long-term inflation target.

The reading is in line with market expectations after the Japanese central bank stuck to its monetary easing policy last week, even as other central banks raise interest rates to tame inflation.

The BoJ said it would pay due attention to the forex markets after the yen hit a 24 year low.

The price of energy went up 0.8 per cent in May, following a 0.8 per cent rise in April, in line with market consensus.

The BoJ's monetary policy aims to achieve two-per cent inflation, a goal that has been stubbornly out of reach during years of price stagnation.

The bank cautioned that it sees recent rising prices as a volatile trend and needs to stick with easing to achieve long-lasting rises.

Inflation has been rising for months in the United States and elsewhere as demand for cars and other goods clashed with supply problems caused by COVID 19 lockdowns.

The problem became worse after Russia invaded Ukraine in February and Western nations imposed steep sanctions on Moscow, causing food and fuel prices to go up, a problem in resource-poor Japan.