Prices rose 0.5% in Japan in August

Tokyo, Sep 20 (EFE) .- Japan's consumer price index (CPI) increased 0.5% year-on-year in August, which represents the thirty-second consecutive month of progress, mainly due to the increase in household goods, the government informed today.

The increase in the indicator, which excludes food prices due to its high volatility, shows a contraction with respect to the 0.6% increase in July, according to data published by the Statistical Office of the Japanese Ministry of Interior and Communications, and continues far from the 2% goal of the Bank of Japan.

The rise in furniture prices and household items, of 2.3% year-on-year, was the factor that most contributed to the increase in the CPI in August, followed by the increase in energy costs (1.2%), and the increase in culture and entertainment (1.1%).

The only sector that experienced a drop in prices in the eighth month of the year was the transport and communications sector, 1.2%.

The BoJ launched a broad monetary easing program in 2013 to place inflation at 2%, although this objective has been repeatedly delayed due to the drop in crude oil prices since late 2014 and the entity has been forced to take additional measures to achieve its achievement.

To the difficulties to reach the inflationary goal will be added the increase of the consumption tax (VAT) planned for next October 1, a measure that will increase this tax from 8 to 10% and that could have a negative impact on spending of households and in the evolution of prices.

Despite this and the decision of the European Central Bank (ECB) and the US Federal Reserve (Fed) to lower interest rates to underpin economic growth, the Japanese central bank opted at its meeting on monetary policy concluded Thursday to maintain its measures , in what some analysts consider a movement to keep a wild card if necessary.