JAPAN’S November consumer inflation marked the biggest year-on-year rise in nearly two years on surging fuel costs, a sign that the fallout from global commodity price gains is broadening.

The increase, however, is unlikely to prompt the Bank of Japan (BOJ) to withdraw monetary stimulus any time soon, with consumer price index (CPI) still distant from the central bank’s 2 percent target, analysts say.

The data released Friday highlights the fresh challenge policymakers face in preventing rising costs of living from hurting already weak household spending and Japan’s fragile economic recovery.

BOJ Governor Haruhiko Kuroda said a weak yen could be inflicting bigger pain on households than before by pushing up prices of imported goods.

“Faced with price hikes for a range of daily necessities, consumers may become even more cautious in boosting spending,” said Yasunari Ueno, chief market economist at Mizuho Securities.

Japan’s core consumer price index, which excludes volatile fresh food but includes oil costs, rose 0.5 percent in November from a year earlier, government data showed, exceeding a median market forecast for a 0.4-percent gain.

It was the biggest increase since February 2020 and followed a 0.1-percent rise in October.

The gain was driven by a 15.6-percent surge in energy costs. Food costs also rose 1.4 percent, indicating households were facing higher grocery costs even when wage growth remains slow.(SD-Agencies)