TOKYO, Sept. 22 (Xinhua) -- Japan's core consumer prices increased for the 24th month in August year on year, the government said in a report on Friday.
According to the Ministry of Internal Affairs and Communications, prices rose 3.1 percent in August from a year earlier.
The pace of the increase in the nationwide consumer price index (CPI), excluding fresh food prices because of their volatility, remained above the Bank of Japan's 2 percent inflation target for the 17th month though unchanged from 3.1 percent in July.
The CPI rose 0.3 percent in August from the previous month on a seasonally adjusted basis, the data showed.
The statistics bureau attributed food-related price hikes in various sub-categories to the CPI climb, while companies continued to pass higher production costs on to consumers.
The core-core CPI, which strips away both energy and food prices, rose 4.3 percent year on year in August, also unchanged from the previous month, the ministry said.
The sub-index of services rose 2 percent in August, the same growth rate as seen in July. This is the first time in almost three decades since September-October 1993 for the index to top 2 percent for two consecutive months, excluding the period of sales tax increases.
Analysts here pointed out that whether a virtuous cycle with higher wages can be created will determine prices and the Japanese economy, as the country's current increase in wages has not kept up with the soaring prices in the country.
While food costs surged by 9.2 percent, durable goods witnessed a 3 percent increase. Accommodation costs increased by 18.1 percent as more people traveled throughout the summer vacation period, Friday's data also showed. ■