Japan¡¯s key inflation gauge rose at the slowest pace in four years as government continued to help ease the cost of living, creating difficult optics for the Bank of Japan to raise interest rates soon.
Japan¡¯s core consumer price index, which excludes fresh food, rose 1.4% in April from a year earlier, the internal affairs ministry said Friday. That was lower than all estimates in a?survey of economists. Taking out energy prices as well, the CPI climbed 1.9% on an annual basis, also below expectations.
The figure was restrained by prices of processed food, which grew at a much slower pace than in March. Fees for private high schools fell at a sharper pace and the pace of gains for durable goods eased. Energy costs fell, albeit at a slower rate than in the previous month.
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