Japan's core inflation hits new record

Japan’s core consumer inflation hit a 41-year high in January. The nationwide core consumer price index (CPI), which excludes volatile fresh food but includes energy costs, was 4.2 percent from a year earlier. Economists had also expected core inflation of 4.2 percent. January’s rise was the fastest since September 1981, when fuel costs soared due to the Middle East oil crisis, hitting Japan’s import-reliant economy. The data showed core consumer inflation topped Japan’s nine-month 2 percent target, mostly reflecting persistent increases in fuel and raw material costs. “Inflation will likely peak in January, but it may not fall below the BOJ’s 2 percent target for some time,” said Yoshimasa Maruyama, chief economist at SMBC Nikko Securities.