Japan Core CPI Likely to Hover in Upper 1% Range Near Term
Dow Jones
Aug 21
0420 GMT - Japan's core consumer inflation, which excludes fresh food, is likely to remain in the upper 1% range in August and September, says SMBC Nikko Securities economist Koya Miyamae. The economist attributes this to the resumption of government subsidies for electricity and city gas, which is expected to cap any acceleration in price gains. From autumn into winter, core CPI growth will likely speed up into the 2% to 3% range as utility bills rise on fading effects of subsidies and the spillover from higher crude oil and LNG prices amid the Strait of Hormuz blockade, he adds. The core measure rose 1.8% in July from a year earlier, compared with June's 1.6% increase, Friday's data showed.
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