Japan sees surging consumer prices in almost a year
Japan’s core consumer prices expanded minimally in May to record their first ever growth in more than a year. The jump was attributed mainly to surging prices, pointing to a rebound in an economy that has been suffering from price weaknesses.
The country’s core consumer prices recorded an annualized increase of 0.1% in May, government data showed on Friday. The reading met analysts’ expectations as it stood as the first rise since March 2020.
The recovery was mainly driven by a rebound in electricity and gasoline costs, an effect that the coronavirus drag had brought in. All in all, the country’s economy was still struggling as it posted a 3.9% contraction in the first quarter. But forecasts have it that it will stage a mild rebound as the pandemic drags consumption.