TOKYO (Reuters) - Japan’s core consumer prices rose 0.3 percent in April from a year earlier, government data showed on Friday, keeping inflation distant from the central bank’s 2 percent target.
The rise in the core consumer price index, which includes oil products but excludes fresh food prices, compared with a median market forecast for a 0.2 percent increase.
An increase in Japan’s sales tax hike last April inflated consumer inflation by 2.0 percentage point until March this year, according to Bank of Japan estimates.
Since some companies waited until May last year in passing on the tax hike, there is a 0.3 point boost from the tax hike for this year’s April CPI, according to the estimates.
When excluding that effect, the April nationwide core CPI was flat year-on-year.
Reporting by Leika Kihara; Editing by Chris Gallagher