Consumer Price Index Declines for Seventh Straight Month in February Due to Impact of New Corona

The Consumer Price Index for last month/February, which looks at the price movements of goods and services consumed by households, excluding fresh food, fell for the seventh consecutive month to minus 0.4 percent compared to the same month last year. This was due to a drop in energy prices and accommodation rates caused by the new coronavirus.

The Consumer Price Index (CPI), which excludes perishable food items that fluctuate greatly due to weather conditions, was 101.5 last month, down 0.4% from the same month last year, the seventh consecutive month of decline, according to the Ministry of Internal Affairs and Communications.

Due to the effects of the new coronavirus, oil prices fell compared to a year ago, causing electricity and gas prices to drop by 7.8% and 6.2%, respectively, while hotels and other establishments lowered their occupancy rates, leading to widespread price cuts and a 5.1% drop in room rates.

On the other hand, prices of air conditioners and air purifiers rose 10.9% and 26.4%, respectively, amid strong sales of home appliances due to so-called "nest egg" demand.

The Ministry of Internal Affairs and Communications (MIC) said, "Oil prices are returning to pre-Corona levels due to expectations of a recovery in the global economy, and energy prices, including electricity and gas prices, are decreasing, and we will continue to watch them carefully.

Source: https://www3.nhk.or.jp/news/html/20210319/k10012923271000.html?utm_int=news-business_contents_list-items_003