The CPI of Japan climbs to 3.7% and marks maximums since 1981 in November

MADRID, 23 Dic.

The CPI of Japan climbs to 3.7% and marks maximums since 1981 in November


The reference year-on-year inflation rate in Japan, which excludes the volatility of fresh food prices, stood at 3.7% in November, one tenth above the rise observed the previous month and the largest increase in the prices since December 1981, fueling expectations of a turnaround in the Bank of Japan's position.

Thus, the rise in the reference inflation rate would have reached 4% without the impact of the relief measures introduced by the Government, including transport subsidies.

According to data released by Japan's Ministry of the Interior and Communications, the headline inflation rate reached 3.8% in November from 3.7% in October.

For its part, the underlying inflation rate, which in addition to fresh food also excludes the impact of energy prices, stood at 2.8%, three tenths above the level of the previous month.

The acceleration of price rises in Japan fuels expectations that the Bank of Japan (BoJ) will adopt more aggressive measures to contain inflation, after this week it surprised the markets by widening the fluctuation range accepted for the price of the ten-year Japanese bond in its yield curve control strategy.

The institution chaired by Haruhiko Kuroda decided to keep the country's interest rates unchanged at -0.1%, the same rate it has been maintaining since January 2016, but announced an unexpected adjustment in the fluctuation band accepted in the price of the 10-year Japanese bond from around /-0.25 percentage points to around /-0.5 percentage points.

In a statement, the entity justified its decision on the need to facilitate the transmission of the effects of monetary relaxation generated within the framework of the yield curve control strategy.