Japan finally has an inflation pulse and the gains are much stronger than they first appear, a factor that could start to influence speculation over the Bank of Japan’s policy path.
While the first rise in key consumer prices in 18 months was just 0.1% in September, once the impact of slashed mobile phone fees is removed, core inflation is closer to 1.4%, according to a Bloomberg calculation.
The sharp reductions in cellphone charges stem from a campaign of public pressure on mobile carriers to reduce fees by former Prime Minister Yoshihide Suga.