Inflation in Japan hit its fastest pace in 40 years in October, putting the central bank in a difficult position as it seeks to explain the need to maintain monetary stimulus.
The core consumer price index in Japan grew 3.6% year on year in October, above estimates for a 3.5% increase and marking the fastest rate since February 1982. According to the internal affairs ministry, the acceleration is being driven by processed food and the fading impact of mobile phone fee reduction.
Without including the cost of fresh food, but including the cost of fuel, the index shows a 3.0% increase in October compared to the same month a year ago.
The latest figures show that the country’s inflation rate has risen above the Bank of Japan’s target of 2% for the seventh consecutive month.