Tokyo Consumer prices rise at fastest rate in over a year

Tokyo Consumer prices rise at fastest rate in over a year

In November, TOKYO, Nov 26 Reuters - Consumer prices in Tokyo rose at the fastest rate in over a year, the data showed on Friday, as electricity and fuel costs went up due to higher global energy prices and the costs of overnight stays in Tokyo.

Pressured by raw material shortages to retailers and consumers, the increase in prices highlights the possibility of nationwide inflation picking up in the coming months.

The consumer price index for Japan's capital, which includes oil products but excludes fresh food prices, rose by 0.3% in November compared to a year ago, government data showed.

Since July last year, the index gained 0.4%, but was slightly weaker than the median market forecast for a 0.4% gain, making it the fastest year-on-year rise since July.

The Tokyo index, which is considered a leading indicator of nationwide price trends, was pushed up by the biggest year-on-year jump in energy prices in over eight years and the fastest rise in fuel costs in more than four decades.

The government offered a variety of travel-related discounts last year, but it was flattered by a 57.6% year-on-year increase in accommodation costs.

The cost of tuna and other fresh fish went up, likely due to soaring fuel costs and stronger domestic demand, a government official said, though they are not included in the core consumer price index.

Consumer inflation in Japan has barely risen as major economies, such as the United States are worried about the risk of too-high inflation after their economies opened up from the Pandemic-induced lock-downs.