According to the latest figures released, the consumer prices excluding food and energy rose 0.3 percent during the month of October compared to the same month of the previous year.

The rate of growth at 0.3 per cent is the highest recorded since 1998. The economy gained momentum with rising prices as economy showed signs of recovery. However, household spending remained weak and the incomes fell from the same month of the previous year. It is believed that ultra-loose monetary policy and stimulus strategy of Prime Minister Shinzo Abe is reviving the economy and is resulting in inflation after years of deflation in the world's third largest economy.

The company's total industrial output rose 0.5 per cent in October, which is its second straight month of increase. The increase is output backed by a rise in production of computer chips and other industrial products, plastics and mobile phones. The Japanese government data showed that excluding food, the core consumer price index rose 0.9 percent from the year before. The rate of growth was at 1.1 per cent when food items are included, according to the latest figures released.