Japan October Core CPI Up 0.1% Year-on-Year Due to "Rising Oil Prices" (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Suhwan] Japan's core Consumer Price Index (CPI) rose for the second consecutive month due to the impact of rising oil prices.

On the 19th, Japan's Ministry of Internal Affairs and Communications announced that the core CPI index for last October increased by 0.1% compared to October of the previous year.

This figure matches the forecast of 0.1%.

The core CPI is an index that measures the price changes of goods and services purchased by consumers, excluding fresh food items with volatile prices, and is one of the important tools for measuring purchasing trends and inflation fluctuations.

The core CPI index excluding energy prices decreased by 0.7% compared to the same period last year. This is why it is interpreted that the rise in oil prices pushed up the CPI.

While concerns about inflation are spreading worldwide, Japan has shown a relatively low inflation rate.

Previously, Japan's core CPI index rose for the first time in 18 months since the outbreak of the COVID-19 pandemic in September. Unlike other countries, the low inflation rate raised concerns that Japan's economic recession might be prolonged.

The day before, the Japanese government announced an economic stimulus package worth 55.7 trillion yen (approximately 567 trillion won), the largest ever, which is interpreted as a response to such concerns.

However, experts predict that Japan's inflation rate will also rise as energy prices, including oil, are expected to continue increasing.

Tom Leermouth, an economist at Capital Economics, said, "The inflation rate is expected to reach 1% in early next year."

This content was produced with the assistance of AI translation services.