Japan core consumer prices up 2.8% in August

Japan’s core consumer prices in August rose 2.8% from a year before, led by the sharpest increase in rice prices in nearly 49 years and higher electricity rates, internal affairs ministry data showed Friday.
The core consumer price index, which excludes often volatile fresh food prices, stood at 108.7 against the 2020 base of 100.
The index was up for the 36th straight month. The pace of growth picked up for the fourth consecutive month.
Rice prices jumped 28.3%, posting the largest increase since the 49.5% growth scored in September 1975.
Consumers rushed to buy rice to prepare for a possible big earthquake following a government warning and an approaching typhoon, further boosting rice prices that had increased due to reduced supply after last year’s harsh summer heat, ministry officials said.
Prices of food excluding fresh food advanced 2.9%, reflecting the rice price surge and a 12.7% rise in chocolate prices stemming from higher material prices.
Electricity rates soared 26.2% and city gas rates 15.1%, following an end of government subsidies.
Power and city gas prices are expected to rise at a slower pace in coming months as the subsidies were revived for usage from August, which will affect bills from September.
Gasoline and kerosene prices switched to year-on-year declines.
The overall CPI, which includes fresh food prices, rose 3.0%. The narrower index excluding fresh food and energy prices climbed 2.0%.