1st LD Writethru: Consumer prices in Japan rise for 25th straight month

Japan's consumer prices in June rose 0.1 percent on a yearly basis, marking the 25th consecutive monthly increase but far below the Bank of Japan's target, government data showed on Friday.

The core consumer price index, which excludes volatile fresh food prices, stood at 103.4 against the 2010 base of 100, the Ministry of Internal Affairs and Communications said.

However, the same measure for Tokyo, a leading indicator of nationwide inflation, fell 0.1 percent in July, the first annual decline since April 2013.

The Bank of Japan, or the central bank, has set a 2 percent inflation target by the first half of fiscal 2016, while the CPI data is far below the central bank's expectation. Some analysts project that the bank will need to increase its assets purchases as the economy and inflation remained stubbornly stalled.

According to the ministry, it was partly caused by a sharp drop in energy prices. In the reporting period, energy prices, which include electricity and gasoline, plunged 7.0 percent in June from a year earlier, with gasoline prices falling 14.2 percent and heating oil prices sinking 21.1 percent.

However, the CPI was still in positive territory due to a rise in the prices of hotel stays, food other than perishables and durable goods such as air conditioners and televisions, according to the ministry.

Meanwhile, the ministry said average monthly household spending in June decreased an inflation-adjusted 2.0 percent from a year earlier for the first fall in two months, due partly to a drop in spending for clothing amid unstable weather conditions.

Household spending figures are a key indicator of private consumption, which accounts for about 60 percent of Japanese gross domestic product. Endi