Japan Logs 1st Annual Core CPI Rise in 5 Years

Tokyo, Jan. 31 (Jiji Press)--Japan's core consumer price index rose for the first time in five years in 2013, buoyed by growth in energy prices reflecting the yen's weakness, government data showed Friday. The average core CPI, excluding often volatile fresh food prices, stood at 100.1 against 100 for the base year of 2010, up 0.4 pct from the previous year, said the Ministry of Internal Affairs and Communications. The previous time the closely followed price indicator rose was 2008, when the index advanced 1.5 pct. Another positive factor for the annual CPI increase was a slimmer drop in home electronics prices, ministry officials said. The core CPI for December last year rose 1.3 pct from a year earlier to 100.6, up for the seventh straight month and stronger than a median forecast of a 1.2 pct increase among 24 economic research institutes polled by Jiji Press. The margin of rise was biggest since October 2008, when the index rose 1.9 pct. Month on month, the core CPI was unchanged. Last year, the core CPI achieved the rise as the yen's weakness helped push up electricity rates and the prices of gasoline and imported handbags, the officials said. Television prices kept falling, but the prices of personal computers and portable audio players turned higher, according to the officials. Meanwhile, the U.S.-style CPI, which excludes food and energy prices, remained weak with a drop of 0.2 pct to 98.3. The index declined for the fifth consecutive year. Last December, electricity rates and the prices of kerosene and canned foods rose year on year. Durable goods, such as TVs, PCs and air conditioners, also fared well. The U.S.-style index for that month was up 0.7 pct at 98.7, posting an increase for the third straight month. The overall CPI, including food and energy prices, rose 1.6 pct to 100.9. For Tokyo's densely populated 23 wards, the core CPI for January stood at 99.0, up 0.7 pct for the ninth straight month of advance. Month on month, the index fell 0.6 pct. END