In November, consumer inflation in Japan might hit new record high in forty years

Consumer price inflation will probably renew its forty-year maximum, raising above its previous record highs. According to a poll conducted by Reuters, the situation is reflected by how intensively companies pass the increased costs of energy, food, and raw materials to consumers.

As shown by the poll, the nationwide core consumer price index (CPI) will probably increase by 3.7% in November from the previous year. It’s necessary to note that the index doesn’t consider volatile prices of fresh food, but it includes energy prices.

The index growth in November is likely to be higher than its annual growth registered in the previous month (3.6%), thus making this surge the biggest one since 1981 when a 4% increase was noted.

As it was stated by economists at Dai-ichi Life Research Institute, the prices have been moved upwards by the growing costs of food, while energy prices are now rising at a slower pace. The economists also highlighted the fact that a burden of higher costs is being passed on to consumers by companies.

But still, the Bank of Japan is reluctant to join a worldwide tendency of increasing interest rates. Despite price pressure creating hurdles for low-income households, Japan’s central bank sticks to its ultra-loose monetary policy.