Cost of living: Japan inflation jumps to new 41-year high

Japan’s inflation price has jumped to a fresh 41-year high as businesses give higher costs for their customers.

Core consumer prices intended for last month increased by 4% from the year earlier, dual the Bank of Japan’s (BOJ) target level.

It puts additional pressure on the main bank to put upward its interest rates to assist ease the rising cost of living.

This week the BOJ surprised investors by announcing it would keep prices near zero, regardless of the increasing cost of from food to fuel.

“Producer prices are already rising at a considerably faster pace than customer prices for some time, but now companies are passing these costs on to customers, ” Damian Thong, who heads Japan equity research from Macquarie Group, informed the BBC.

“We believe that the BOJ will [eventually] end its negative interest rate policy, ” he additional.

Producer prices really are a measure of inflation in a wholesale level, while consumer prices reflect how much is paid by households for goods and services.

Official data released on Friday showed inflation was in its highest since 1981, the 9th month in a row that it has been over the central bank’s 2% target.

Even after the jump within prices, Japan still has one of the cheapest inflation rates in the world.

As a result the tour’s third largest economic climate has bucked the trend of many other nations that have raised interest rates sharply over the last year.

On Wednesday the BOJ kept interest rates near zero, which pushed the yen down in worth against other main currencies.

Many professionals had expected the central bank to start to phase out its economic incitement programme in an attempt to control rising prices.

The newest official figures demonstrated that inflation in america stood at 6. 5% in December, while it was 9. 2% in the eurozone and 10. 5% in the UK.