Core consumer prices jumped 2.1 percent in May from a year earlier, staying above the
The nationwide core consumer price index excluding volatile fresh food items rose for the ninth straight month, a sign that cost-push inflation has shown no signs of abating as a sharp slide in the yen continues to inflate import costs for resource-poor
After the closely watched gauge of inflation leaped 2.1 percent in April, the sharpest gain in about seven years, the pace did not slow in May.
The fading out of the year-on-year impact of lower mobile data fees, still down 22.5 percent in May, is also a factor behind the increase in core CPI, the
The
Energy prices surged 17.1 percent from a year earlier. Kerosene prices leaped 25.1 percent and gasoline jumped 13.1 percent even as the government subsidized oil wholesales to curb retail prices rises, the data showed.
Food prices, excluding perishables, gained 2.7 percent, marking the fastest pace of gain in about seven years. Potato chips and hamburgers are among those items that saw price hikes.
"Energy prices may be capped by government subsidies, but food prices will continue to rise in coming months," said
"Higher prices are negative for consumption. A recovery in demand from COVID-19 fallout is now supporting the economy but once it runs its course, rising prices could be felt like a body blow," he added.
The increasing cost of living is among the key issues in the
The recent bout of inflation is not desirable and adds downward pressure on the economy, the
"The situation is severe for consumers because inflation is accelerating at a much faster pace than wages," Shinke said.
The so-called core-core CPI, excluding both energy and fresh food prices, gained 0.8 percent, marking the second straight month of increase.
==Kyodo
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