Tokyo consumer prices were flat in June, halting a 10-month slide amid firmer global energy markets and despite business restrictions that remain in place to contain the coronavirus.
Prices in the capital excluding fresh food were unchanged from a year earlier, with the gauge getting support from higher education costs and moderating falls in electricity bills, the internal affairs ministry reported Friday. Analysts had forecast a 0.1% drop in the headline figure.
While rebounding global energy markets are buoying prices, Japan’s situation contrasts with the United States and other countries, where fear of inflation has started to fuel expectations for an eventual withdrawal of central bank stimulus. The Bank of Japan doesn’t see inflation hitting its 2% target before 2024, meaning it’s likely to keep easing for the foreseeable future.