TOKYO Japan's core consumer prices rose in September for the first time since the country was in the early stages of the coronavirus pandemic in March 2020, a sign that rising energy and raw material costs are gradually pushing inflation up.
Analysts expect rising fuel costs to accelerate consumer inflation in coming months, though any increase will be modest compared with other advanced economies as sluggish wage growth weighs on consumption and keeps firms from hiking prices much.
The nationwide core consumer price index CPI, which excludes volatile fresh food prices but includes fuel costs, rose 0.1 per cent from a year earlier in September, government data showed on Friday, matching a median market forecast for a gain of 0.1 per cent and compared with zero growth in August.
The data will be among factors the Bank of Japan will consider at the next week's policy meeting when it releases fresh quarterly growth and inflation projections.
The BOJ is likely to cut its consumer inflation forecast for the year ending in March, sources have told Reuters, as weak consumption and one-off factors such as cuts in cellphone charges offset upward pressure from energy costs.
Japan has not been immune to global commodity inflation, with wholesale prices soaring at a 13-year high of 6.3 per cent in September, putting pressure on corporate profit margins and raising the risk of unwanted consumer price hikes.
Consumer inflation has been stuck around zero as firms remain hesitant to pass on higher costs to households.