Japan’s Core Inflation Rises 1.8% in March, Under 2% for Second Month

Overview

• Core consumer prices excluding fresh food rose 1.8% year over year in March, bringing the index to 112.1.
• Energy costs fell 5.7% from a year earlier, with gasoline down 5.4% after a much larger 14.9% drop in February tied to a temporary tax cut.
• The price survey covered March 11–13, so the gasoline subsidy that restarted on March 19 did not affect these figures.
• Food excluding fresh food rose 5.2% from a year ago as the pace of gains eased for an eighth straight month, with chocolate up 24% and rice up 6.8%.
• For the fiscal year, core prices averaged 2.7% higher, marking a fourth straight year above 2%, and rice prices jumped 48.9% on that basis.