TOKYO (Reuters) – Japan’s core consumer inflation likely accelerated again in October, staying above the central bank’s 2% price target for a 19th straight month, a Reuters poll found on Friday.
The nationwide core consumer price index (CPI), which strips off volatile fresh food items, likely grew 3.0% in October from a year ago, according to the median estimate of 17 economists, compared with a 2.8% gain in September.
After core CPI hit a peak of 4.2% in January, it slowed below the 3% threshold for the first time in over a year in September as utility bills fell reflecting the lagged effect of past oil price falls.
“The pace of year-on-year growth is expected to increase in October as the government’s subsidies on electricity and gas bills have been reduced,” said Shumpei Fujita, economist at Mitsubishi UFJ Research and Consulting.
The government will release the October CPI data at 08:30 a.m. on Nov. 24 (2330 GMT, Nov. 23).
Bank of Japan Governor Kazuo Ueda said on Friday the central bank will debate a strategy for exiting ultra-easy monetary policy when sustained achievement of its 2% inflation target approaches.
The government earlier this month compiled a package of measures to cushion the economic blow from inflation that will involve spending of more than 17 trillion yen ($113 billion).
Data on Wednesday showed the economy shrank July-September, snapping two straight quarters of expansion on soft consumption and exports. The data suggests stubbornly high inflation is taking a toll on household spending.
(Reporting by Kaori Kaneko; Editing by Stephen Coates)
