Tokyo’s June consumer inflation trends lower, but holds above 3%

Tokyo consumer inflation slowed in June, but held above the 3 percent-level for the third straight month due to higher food prices, especially rice.

The internal affairs ministry says the capital’s consumer price index rose a preliminary 3.1 percent from a year earlier, but dipped 0.5 points from May. The index excludes fresh food prices, which fluctuate based on weather.

The weakening trend is attributed to a gasoline subsidy introduced by the national government in May. Another factor is the Tokyo Metropolitan Government’s decision to cut the basic water utility fee to zero in June. That will last for 4 months.

But higher food prices continue to pressure household budgets.

Tokyo rice prices in June were up 90.6 percent on year, even though they dipped 3.1 points from May.

This pushed up the cost of items made from the staple food, such as daily snacks like onigiri rice balls, which jumped 18.1 percent.

Coffee bean prices surged 49.8 percent and chocolate 48.2 percent.

Tokyo consumer prices are regarded as a leading indicator of nationwide inflation.