Japan inflation ticks up but far from target

Tokyo: Japan’s consumer prices rose for the 10th straight month in October, government data showed on Friday, but inflation was still far from the target seen as crucial to revive the world’s third-largest economy. The core inflation rate was 0.8 per cent year-on-year in October, according to data published by the internal affairs ministry, far below the two per cent target set by the Bank of Japan (BoJ).
When the volatile prices for fresh food and energy were stripped out, prices rose by even less — 0.2 per cent, the ministry said.
Japan’s economy has battled deflation for many years and the BoJ’s ultra-loose monetary policy appears to be having limited impact.
Other data showed that October household spending — seen as key for exiting deflation — remained flat compared to the same month a year earlier. However, this was better than the 0.3 per cent drop market analysts were expecting. Household spending had fallen by 0.3 per cent in September after rising by 0.6 per cent in August. — AFP