Japan's core inflation rate hits 3.2 percent in January
TOKYO
Japanese inflation accelerated in January, further pressuring households as prices excluding fresh food rose 3.2 percent on-year, government data showed on Feb. 21.
Speculation is growing that the Bank of Japan may hike interest rates again to counter rising prices and as part of its retreat from years of aggressive monetary easing to boost the moribund Japanese economy.
The core Consumer Price Index (CPI) was above market expectations of a 3.1 percent rise, and accelerated from 3 percent in December, the Internal Affairs Ministry said.
Overall, inflation including volatile fresh food prices was up 4 percent on-year, speeding up from 3.6 percent in December and 2.9 percent in November.
In January, the price of cabbage almost tripled year-on-year after last year's record summer heat and heavy rain ruined crops in what media have dubbed a "cabbage shock."
The price of rice also soared more than 70 percent, the data showed, while electricity bills jumped by 18 percent.
Last week, the government said it would release a fifth of its emergency rice stockpile after hot weather, poor harvests and panic buying over a "megaquake" warning pushed up its cost.
The Bank of Japan raised interest rates again last month, having done so in March for the first time in 17 years, and signalled more hikes to come.
Recent gross domestic product (GDP) figures showed that Japan's economic growth slowed sharply last year, although the rate for the fourth quarter topped expectations.
