Inflation in Japan in October accelerated to the highest in three months

In Japan, there is an acceleration in the rate of inflation. According to the report of the Ministry of Internal Affairs and Communications of the country, in October consumer prices increased by 3.3% in annual terms.

This was the highest figure in the last three months and exceeded the September growth of 3%. Analysts had forecast growth of 3.2%. 

Various categories of goods and services showed multidirectional price dynamics: food rose by 8.6%, clothing and footwear – by 3%, transport – by 3.2%, furniture and household goods – by 6.9%. Prices for educational services increased by 1.3%, medical services – by 2.3%.

At the same time, utilities continued to fall in price for the ninth month in a row, having decreased by 10% in October. This reduction includes a reduction in the cost of electricity by 16.8% and gas by 10.2%.

The key inflation indicator tracked by the Bank of Japan and excluding fresh food rose by 2.9% in October after an increase of 2.8% in September. Inflation excluding food and energy was 4%, which is less than 4.2% in the previous month.

Monthly consumer price growth in October was 0.7%, which is significantly higher than the September figure of 0.3%.