Japanese inflation spikes to 1.9%

Annual core inflation in Japan soared by almost half a point in the year to June to 1.9%, up from 1.5% the previous month.

The jump was the largest since 1997, when a change in consumption tax prompted a sharp rise in inflation.

The surge was entirely due to higher food and energy prices. Annual inflation excluding food and energy was a mere 0.1%.

The trend looks set to continue in the coming months with the measure for annual core inflation for Tokyo in the year to July rising from 1.3% to 1