Core consumer prices in Tokyo increased 1.9 percent in April from a year earlier, the fastest pace in over seven years, accelerated by rises in crude oil and material prices amid Russia's invasion of Ukraine, government data showed Friday.
The core consumer price index excluding volatile fresh food items, seen as an indicator of Japan's CPI, marked the eighth straight month of year-on-year gain and its largest increase since March 2015, the Ministry of Internal Affairs and Communications said in a preliminary report.
The rise, which was close to the Bank of Japan's 2 percent inflation target, also resulted from the waning effect of sharply lower mobile phone fees that began last spring and the yen's sharp depreciation against the U.S. dollar, which pushed up consumer prices via higher import costs.
Among energy prices, which jumped 24.6 percent, electricity fees surged 25.8 percent, city gas fees soared 27.6 percent and kerosene prices climbed 21.0 percent.
Food prices also rose due to higher wheat and beef prices, with the price of white bread rising 8.4 percent. Dining prices also increased 1.5 percent.
Prices of durable household goods climbed, including a 21.6 percent increase in refrigerator prices. Accommodation fees gained 6.1 percent.
Meanwhile, communication fees for mobile phones plunged 22.5 percent in the reporting month, but the size of the decline contracted from 52.7 percent in March.
Koya Miyamae, a senior economist at SMBC Nikko Securities Inc., said the nationwide CPI for April, set for release on May 20, is also expected to reach around 2 percent, but the current increasing prices are unlikely to affect the BOJ's ultraeasy monetary policy.
"The BOJ is expected to maintain the current stance, as it believes the current rises in prices are temporary," Miyamae said.
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