Japan inflation slows to 3.2% in May

Japan inflation slows to 3.2% in May

Japan's consumer prices rose 3.2 percent year-on-year in May, slowing from 3.4 percent in April, government data showed Friday.

The figure, which excludes volatile fresh food prices, beat market expectations and was higher than the 3.1 percent recorded in March.

Inflation in Japan has been lower than the eye-watering price increases in the United States and elsewhere that have prompted many central banks to hike interest rates.

Yet it remains higher than the Bank of Japan's two-percent target, surpassed every month for more than a year.

Friday's figure beat market expectations of 3.1 percent in a survey of Bloomberg Economists.

Higher prices for processed food, durable goods, mobile phone handsets and hotel fees among other items contributed to inflation in May, the internal affairs ministry said.

Declines in electricity and gas prices contributed to the slowing pace of inflation.

Excluding energy, the data released by the ministry showed prices rose 4.3 percent in May, up from 4.1 percent in April.

Japan's central bank said earlier this month it would maintain its long-standing, ultra-loose monetary policy as part of efforts to boost economic growth.

The institution has bucked a global trend of raising interest rates to tackle inflation -- a policy gap that has pushed down the value of the yen against the dollar.