2017.05.2521:46:00UTC+00Japanese Inflation Driven Up by Higher Energy Costs

Japan's core consumer prices increased 0.3 percent on-year in April, marking the fourth consecutive month and gains and the fastest pace of inflation increase since mid 2015.

The jump in inflation was mainly due to the higher energy costs and follows a 0.2 percent jump in March, according to data from the Internal Affairs Ministry. The increase in CPI, which covers oil prices but does not include fresh food prices, was smaller than the estimated 0.4 percent increase. Overall, prices rose 0.4 percent.

Consumer prices excluding the volatile prices of fresh food and energy were flat in April from the same period a year earlier.

Core consumer prices in the country's capital, Tokyo, an early indicator of nationwide data, climbed 0.1 percent in May from a year prior period, higher than the projected flat growth by economists.

While the latest monthly figures are encouraging, it is still significantly far from the central bank's 2 percent target and emphasizes that price gains are sluggish and are finding it difficult to keep up with the economy's modest rate of growth.

But with the economy posting its longest streak of quarterly gains, majority of analysts anticipate the Bank of Japan to reduce its monetary stimulus.