Alarms Sound as Japanese Consumer Prices Rise

28 January 2008

TOKYO: Japan's core consumer price index rose 0.8% in December from a year earlier, the highest rise in nearly a decade, according to latest figures from the Ministry of Internal Affairs and Communications.

The country’s economy minister, Hiroko Ota, has warned: "Rising oil and commodity prices are having an effect. With wages not increasing, increases in prices of products related to people's everyday needs are a negative factor for consumer spending."

Despite rising inflation, economists say the Bank of Japan is unlikely to lean further toward raising interest rates in the near-term amid the current uncertainty over the global economy.

Data sourced from Business Week (online); additional content by WARC staff