UPDATE 1-Tokyo’s consumer staples prices stop falling for the first time in 13 months

* Tokyo core CPI year / year flat in August vs f’cast -0.2%

* Increased hosting cost support prices (add details, background)

TOKYO, Aug.27 (Reuters) – Underlying consumer prices in Tokyo stopped falling for the first time in more than a year in August, according to data released on Friday, highlighting the possibility that domestic inflation could s ‘accelerates in the coming months thanks to a recovery in domestic demand. rest.

The core consumer price index (CPI) for the Japanese capital, which includes petroleum products but excludes fresh food prices, remained stable in August compared to the previous year, according to government data.

This compares to a median market forecast for a decline of 0.2%. It follows July’s 0.3% year-on-year decline, which was revised down after rising 0.1%.

Tokyo’s core CPI experienced its last year-on-year rise in July of last year, when the index gained 0.4%.

The flat reading of the Tokyo index, which is considered a leading indicator of price trends nationwide, has been held back by rising prices for hotel nights and household items, in part due to of the base effect of the crisis caused by last year’s pandemic.

The Bank of Japan’s years of massive money printing failed to bring inflation down to its 2% target as businesses are reluctant to pass the higher costs on to households, in part due to weakness consumer confidence.

Nationwide consumer inflation has barely increased even as other major economies, such as the United States, begin to worry about the risk of too high inflation as their economies break down the bottlenecks induced by the pandemic.