BOJ Expects New Inflation Measure to Rise

The Bank of Japan expects a new measure of consumer price inflation to rise above 1% over the summer, adding to evidence that the economy is escaping more than a decade of deflation, people close to the central bank said.

Officials recently began to release a consumer price index that strips out energy and fresh food prices in the central bank's monthly economic report. The new index is an attempt to show the public that inflation is returning and that overall price growth is simply being masked by cheaper global oil costs. The new measure rose 0.7% in May.