Tokyo: Japanese consumer prices picked up in January for the first time in almost a year, government data showed on Friday, halting a long string of declines as Tokyo struggles to put deflation in the rear view mirror.
A key inflation index, which excludes the volatile cost of fresh food, rose 0.1 per cent from a year earlier, the internal affairs ministry said.
The rise, largely due to rebound in oil and energy prices, marked the first uptick in 11 months and ended the longest string of declines in more than five years.
“Consumer prices will continue to pick up, thanks to oil and a weak yen,” said Maiko Noguchi, a senior economist at Daiwa Securities.
“The question is: will underlying strength in inflation pick up with stronger wage growth, household spending and business confidence — I don’t think it will at this point,” she told Bloomberg News before the data release.
Separate figures on Friday showed household spending was weak, falling 1.2 per cent year-on-year. That was the 11th consecutive month of decline. — AFP
Oman Observer is now on the WhatsApp channel. Click here
