TOKYO, Oct 20, 2023 (BSS/AFP) - Japanese consumer inflation slowed to below
three percent last month for the first time since August 2022 on the back of
easing gas and electricity prices, government data showed Friday.

The annual reading of 2.8 percent, excluding volatile fresh food prices, was
just shy of market expectations of 2.7 percent and follows 3.1-percent rises
in August and July in the world's number-three economy.

But stripping energy as well as fresh food, Japan's prices rose 4.2 percent,
after a 4.3-percent increase in August, data published by the internal
affairs ministry showed.

This adds to pressure on Prime Minister Fumio Kishida, whose poll ratings are
at their lowest levels since he took over two years ago in part because of
voter unease over inflation.

Kishida's government is working on a stimulus package to ease the pain of
rising prices on Japanese consumers including through extending fuel and
power subsidies.

Kishida, 66, can govern until 2025 but there has been speculation that he
might call a snap election ahead of a likely tough internal leadership vote
in his ruling Liberal Democratic Party (LDP) next year.

Japan, in common with other economies around the world, has seen prices rise
on the back of the Ukraine war, while a weaker yen has also made imports more
expensive.

Unlike other major central banks which have raised interest rates, the Bank
of Japan has stuck to its ultra loose policy stance in the expectation that
inflation will ease, adding to pressure on the yen.