Japanese inflation seen minimal

TOKYO: Japan´s core consumer prices were expected to rise just fractionally in February from a year ago, a Reuters poll found, as low energy costs and soft consumer demand kept prices subdued.

The core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, was seen rising 0.1 percent in February from a year earlier, the poll of 22 analysts found.

Core consumer prices in Tokyo, available a month before the nationwide data, are expected to decline 0.2 percent in March from a year ago, the poll found.

"Downward pressure on core CPI from gasoline, electricity and gas price declines continues, and the yen´s recent appreciation helped to lower costs of imported goods, so price growth will likely stay around zero for a while," Takeshi Minami, chief economist at Norinchukin Research Institute, said in a report.

Dai-ichi Life Research Institute Chief Economist Yoshiki Shinke forecast that core CPI would decline again over March because of the fall in energy prices.

The Bank of Japan surprised markets in January by adopting negative interest rates on some deposits, and although it kept policy settings unchanged in March the BOJ offered a bleaker view on the economy, signalling its readiness to provide extra stimulus to reach its ambitious 2 percent inflation target.

The internal affairs ministry will announce core CPI at 8:30 am on March 25 (2330 GMT March 24).