Japan Core Consumer Prices:

 Article Source: https://mainichi.jp/english/articles/20220624/p2g/00m/0bu/019000c

Article:

TOKYO (Kyodo) -- Core consumer prices jumped 2.1 percent in May from a year earlier, staying above the Bank of Japan's inflation target for the second straight month, lifted by higher energy and food prices, government data showed Friday.

The nationwide core consumer price index excluding volatile fresh food items rose for the ninth straight month, a sign that cost-push inflation has shown no signs of abating as a sharp slide in the yen continues to inflate import costs for resource-poor Japan.

Ideas:

It must be remembered that the 2.1 percent increase is only related to increases in producer and wholesale prices increases and not relatted to consumer demand in the Japanese economy.

Most likely prices will continue to increase for the considerable time, which means consumers, whether they like or not have to get used to the higher for the time being.

The Japanese government could impose some price control if needed to keep prices down to help those on fixed incomes and low income groups.

Article:

The fading out of the year-on-year impact of lower mobile data fees is also a factor behind the increase in the key gauge of inflation, the Ministry of Internal Affairs and Communications said.

The BOJ has maintained its ultralow rate policy on the view that cost-push inflation will only be transitory, diverging from its U.S. and European peers that are raising interest rates to fight inflation. But it has faced increased pressure to tweak policy to address the yen's weakness.

Ideas:

Did lower moble data fees really have that much of an impact on the consumer price index overall? 

If they did it might mean of course mobile fees were high be begin for the market and they needed to be reduced for the benefit of the average consumer.

The cost -psuh inflation might only be tranistory or short term but tell that to the average consumer or company that is seeing its costs continue to increase.

Yes, eventually the BOJ might have to do sometthing if the yen continue to get weaker and weaker which is hurting importer maybe too much now.

Article:

Energy prices surged 17.1 percent from a year earlier. Kerosene prices leaped 25.1 percent and gasoline jumped 13.1 percent even as the government subsidized oil wholesales to curb retail prices rises, the data showed.

Food prices, excluding perishables, gained 2.7 percent, marking the fastest pace of gain in about seven years.

Ideas:

The increase in energy prices most likely will not be aborbed by companies but passed on to the next in the supply chain meaning even higher prices in the future.

The government subsidizing oil wholesalers is good but the problem is oil and gas prices continue to increase like there was no subsidy.

Food prices will continue to increase as long as the yen is weak and also because of raw mateiral prices that are imported from overseas.

Article:

Rising prices are among the key issues in the House of Councillors election next month as opposition parties step up criticism of Prime Minister Fumio Kishida's government for its lack of action.

The so-called core-core CPI, excluding both energy and fresh food prices, gained 0.8 percent, marking the second straight month of increase.

Ideas:

If the House of Councillors was really interested in the increase in prices they would have acted on it a long time ago.

Unfortunately some or many issues are not looked at or talked about until there are elections.

The CPI wil continue to increase until the yen dcreases and or raw material prices begin to decrease and that might be for a while.

Perhaps Japanese consumes and Japanese businesses have become to used to deflation and or constant low prices and it might take some time for them to get used to the idea that even in Japan prices can increase.

Have a nice day and be safe!