Gains in Japan’s core consumer prices accelerated in November, and would have hit the central bank’s 2% target without the impact of slashed mobile phone fees.
Consumer prices excluding those for fresh food rose 0.5% compared with a year earlier, driven by higher energy prices, the internal affairs ministry reported.
While Japan’s inflation rate continues to lag behind those of its global peers, the underlying price trend is being obscured by distortions caused by government policies — such as the drive to lower phone charges. Cellphone fees were down 54% from a year earlier.