Core consumer prices will rise by 2.8% in the 2023 financial year

TOKYO (Jiji Press) – Core consumer prices rose 2.8% in fiscal 2023 from the previous year, rising for the third year in a row due to 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 ended last month, compared with the base year of 2020, the Interior Ministry said.

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

Food price growth excluding perishables accelerated from 5.4% to 7.5%, the fastest increase since 11.4% in fiscal 1975.

Milk and egg prices rose sharply in response to higher feed prices. Many other food products saw price increases, including confectionery and prepared foods.

Prices for accommodation services rose by 25.5%, reflecting an increase in the number of foreign tourists visiting Japan.

Energy prices fell by 8.0%. Due to government subsidies, electricity rates fell by 15.5% and city gas rates by 11.7%.

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