Survey: Under the influence of the pump of food prices, Japan's inflation rate in January may reach a 17-month high

The January core CPI in Japan may accelerate from the previous month and reach the fastest growth in 17 months, due to soaring food prices and reduced energy subsidies, according to a survey released by Reuters on Friday. A survey of 18 economists expects the core CPI in January, including petroleum products but excluding fresh food prices, to increase by 3.1% year-on-year, compared to a 3% increase in December last year, making it the largest year-on-year increase since August 2023. Shunpei Fujita, an economist at Mitsubishi UFJ Research and Consulting, said, "With food prices continuing to rise and government subsidies to oil refiners reduced, the year-on-year increase is expected to expand compared to last month." In recent months, the prices of rice, vegetables, and other basic necessities have soared. The Japanese government has announced plans to release 210,000 tons of rice from its stockpiles to ease distribution blockages and stabilize prices.