By Dow Jones Business News, September 26, 2013, 08:25:00 PM EDT
TOKYO--Prices of core goods across Japan rose 0.8% in August from the year earlier, a sign that higher energy and
import prices are contributing to the government's aim of ending deflation.
The rise was slightly higher than a 0.7% rise in the core consumer price index in July, and compared with a 0.7% rise
forecast by economists surveyed by Dow Jones Newswires and the Nikkei. It also marked the first time there has been
three consecutive months of positive price growth since the beginning of 2012.
Core consumer prices exclude those of fresh food, which tend to be volatile.
The sustained price rises are encouraging for Japan's government and central bank, who have committed to restoring
Japan's long-term economic potential by ending 15 years of falling prices and wages.
In April, the central bank pledged to reach its target of a 2% rise in prices in two years. Core CPI hasn't been
positive for a full year since 2008, and hasn't been above 2% for a full year since 1992.
August's rise was underpinned by higher gasoline prices and costs associated with owning an automobile, such as
Economists noted that though a recent weakening in the yen has helped lift the overall price index by making imports
more costly in yen terms, the prices of many everyday items such as household appliances are still falling. Core core
CPI, which excludes energy and food, fell 0.1% on year.
Meanwhile, core prices in Tokyo, seen as a leading indicator of national price trends, rose 0.2% in September from the
same month a year earlier. That compared with a 0.3% rise predicted by economists surveyed by Dow Jones Newswires and
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