Core Consumer Prices Rise 2.8% in Fiscal 2023

Jiji Press

11:46 JST, April 20, 2024

TOKYO (Jiji Press) — Core consumer prices in fiscal 2023 grew 2.8% from the previous year, rising for the third straight year on higher food prices, government data showed Friday.

The core consumer price index, which excludes often volatile fresh food prices, averaged 105.9 in the year that ended last month, against the base year of 2020, the internal affairs ministry said.

The core CPI growth exceeded the Bank of Japan’s 2% inflation target for the second successive year, although the pace of increase slowed from the previous year’s 3.0%.

Growth in prices of food excluding perishables accelerated to 7.5% from 5.4%, posting the fastest increase since 11.4% in fiscal 1975.

Prices of milk and eggs surged in response to higher feed prices. Many other food items marked price rises, including confectionery and prepared food.

Accommodation service prices climbed 25.5%, reflecting an increase in foreign tourists visiting Japan.

Energy prices plunged 8.0%. The government’s subsidies pushed down electricity fees by 15.5% and city gas fees by 11.7%.

The overall CPI, which includes fresh food prices, rose 3.0%. The index excluding fresh food and energy prices climbed 3.9%, the highest increase since 4.0% in fiscal 1981.