Japan's consumer price index (CPI) increased 1.0% year-on-year in September, marking the twenty-first consecutive month of progress, driven mainly by the rising cost of energy, the Japanese government reported today.
The increase in the indicator, which excludes food prices due to its high volatility, shows an acceleration with respect to the 0.9% year-on-year increase recorded in August, although it is still far from the 2% target set by the Bank of Japan (BoJ). ).
Compared to the previous month, prices increased by 0.1%, according to data published by the Statistics Office of the Japanese Ministry of the Interior and Communications.
The rise in fuel, water and electricity prices of 3.7% year-on-year was the factor that contributed the most to the increase in the CPI in September, followed by the increase in transport and communications (2.1%) and the food (1.8%).
The only sectors that experienced lower prices last month were household furniture and utensils, 1.0% year-on-year, and housing, 0.1%.
The BoJ launched in 2013 a broad program of monetary easing to place inflation at 2%, although this objective has been delayed several times by the fall in oil prices since the end of 2014 and the entity has been forced to take additional measures to achieve its attainment.
At its monthly meeting in July, the Japanese central bank announced for the first time since 2016 adjustments in its monetary policy, including greater flexibility in its purchases of government bonds and the diversification of its investments in exchange-traded funds, with the aim of achieving inflation target.
To the difficulties to reach the inflationary goal will be added the increase of the tax on the consumption foreseen for October of 2019, a measure that will increase this tax from 8 to 10 percent and that could have a negative impact in the expense of the homes and in the evolution of prices.