Japan's key CPI up 1.5 per cent in May

Tokyo  - Japan's core consumer price index (CPI) rose 1.5 per cent in May from a year before, recording the fastest increase in more than 15 years, the government said Friday.

The core CPI, which excludes fresh food prices, came to 101.6 against 100 for the base year of 2005, the Ministry of Internal Affairs and Communications said in a preliminary report.

The reading came against an average market forecast of a 1.4-per-cent rise.

Japan's overall CPI, including fresh food prices, stood at 101.7 in May. The index was up 1.3 per cent from a year before.

The ministry also reported the nation's monthly household spending for May, which fell a real 3.2 per cent from a year earlier to 288,128 yen (2,676 dollars).

The average monthly income of wage-earning households declined 0.6 per cent to 435,076 yen, and their monthly spending dropped 0.9 per cent to 315,152 yen.

Household spending figures are a key indicator of personal spending, which accounts for about 55 per cent of Japanese gross domestic product.

Meanwhile, Japan's seasonally adjusted unemployment rate remained unchanged at 4 per cent in May from the previous month, the ministry's reports said.

Some 2.7 million people were jobless in May, up 120,000 from the same month a year before. The increase was the largest in five years.

According to the ministry, both the number of those who voluntarily quit their jobs and that of those dismissed from them were on the rise in May.

There were 92 jobs available for every 100 job seekers, the labour ministry said.

The number of job offers rose 1.7 per cent in May from April, and that of job seekers grew 2.3 per cent. (dpa)

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