Japan's Consumer Prices Rise 2.8%

Japan's core consumer prices rose 2.8 percent in September from a year earlier, down from a 3.1 percent rise in August, government data showed Friday.

The index, excluding volatile fresh food items, marked the slowest pace since August 2022, but remained above the Bank of Japan's 2 percent inflation target for the 18th straight month, according to the Ministry of Internal Affairs and Communications.

Stripping away both energy and fresh food items, the so-called core-core index climbed 4.2 percent, slowing slightly from a 4.3 percent increase in August.

Energy prices fell 11.7 percent, as the government has been actively reducing utility bills. Prices for electricity and city gas tumbled 24.6 percent and 17.5 percent, respectively.

Government subsidies to lower fuel costs have helped ease some inflationary pressures. Without them, core CPI would have risen 3.8 percent in September, the ministry said.

Food prices, excluding fresh food, continued rising sharply, up 8.8 percent, down slightly from a 9.2 percent rise in August, while services prices increased 2.0 percent in September, the same pace seen in August.