TOKYO, March 21 (Xinhua) -- Japan's core consumer prices increased 3.0 percent in February from a year earlier, but the pace of gain slowed for the first time in four months, government data showed Friday.
The increase in the core consumer price index (CPI), excluding volatile fresh food, slowed from the previous month's 3.2 percent gain due largely to the resumption of government subsidies to offset energy costs, the Ministry of Internal Affairs and Communications said.
The inflation rate, a key indicator for the Bank of Japan (BOJ) in determining the timing of rate hikes, has remained at or above the central bank's 2 percent price stability target since April 2022.
The core-core CPI, which strips away the effects of both fresh food and fuel costs to reflect underlying price trends, increased 2.6 percent in February from a year earlier after a 2.5 percent rise in January.
Energy prices rose 6.9 percent, slowing from a 10.8 percent gain in January, as the government reinstated subsidies for electricity and city gas consumed between January and March as rising prices are taking a toll on households.
Electricity prices were up 9.0 percent after an 18.0 percent rise in January, while those for city gas increased 3.5 percent, also easing from a 9.6 percent growth, the data showed.
Prices for food, excluding perishable items, gained 5.6 percent, while those for rice surged 80.9 percent, the biggest increase since comparable data became available in 1971, amid a supply shortage and higher production and transportation costs.
Service prices, which the BOJ closely monitors when deciding on monetary policy as they often reflect wage increases, grew 1.3 percent, compared with 1.4 percent in January. ■
