Tokyo consumer prices hit 2.4% in August

Tokyo’s consumer prices hit a nearly decade-high in August, with a 2.4 per cent year-over-year increase in the core consumer price index (CPI), mainly fueled by rising rice prices.

The figure, which excludes volatile fresh food prices, reached 107.9 in August, up from 105.5 in the same month last year. This marks the largest annual increase since September 2014.

The rise in consumer prices was primarily driven by a surge in rice prices, which jumped 26.3 per cent. This was the largest increase in about 20 years, fuelled by poor crop growth due to last summer’s heatwave and increased demand from the restaurant industry.

Electricity and gas prices also contributed to the inflation. Electricity costs surged 24.2 per cent, while urban gas prices rose 16.9 per cent. These increases followed the temporary end of government subsidies.

Prices of food excluding fresh items rose by 2.7 per cent. The core-core CPI, which excludes both fresh food and energy costs, climbed 1.6 per cent year-over-year.

Attribution: Xinhua

Subediting: M. S. Salama