TOKYO (Reuters) - Tokyo’s core consumer prices were expected to remain subdued in July, a Reuters poll found on Friday, reflecting minimal gains in the price of non-energy related products.
Tokyo’s core consumer price index, which includes oil products but excludes fresh food prices, was expected to rise 0.7 percent in July from a year ago, the same rate as seen in June, the poll of 16 economists showed.
The Tokyo index is available a month before nationwide core CPI. Data out on Friday showed core consumer prices rose by an annual 0.8 percent in June, up slightly from 0.7 percent in May, but the rise was due largely to recent gains in oil costs with the prices of other goods barely picking up.
“Price gains in electricity and gasoline were the main factors behind rises in the Tokyo’s core CPI. But excluding energy costs, price gains were limited,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.
The internal affairs ministry will publish the core CPI for Tokyo at 8:30 a.m. on Friday July 27 Japan time (2350 GMT on July 26).
The Bank of Japan might concede at its meeting later this month that inflation could fall short of its 2 percent target for as long as three more years, sources said, in what would be the strongest sign yet of acceptance that its goal cannot be reached quickly.
Reporting by Kaori Kaneko; Editing by Eric Meijer