The core CPI inflation indicator in Tokyo for December is lower than general expectations, but consistent with the Bank of Japan's assessment, which suggests that the 2% inflation target is likely to be achieved. Core inflation (excluding fresh food) reflects the rise in utility prices following the government's cancellation of energy subsidies. The inflation in service prices, which the Bank of Japan focuses on, has increased as companies pass on rising wage costs after the second half of the fiscal year began in October, and there has been a rise in energy and non-fresh food import prices. The core inflation rate in Japan (excluding fresh food) rose year-on-year from 2.2% in November to 2.4%. This is below the general estimate of 2.5%. Excluding fresh food and energy, the year-on-year increase slightly decreased from 1.9% to 1.8%. This is also below the general estimate (1.9%). The overall inflation rate rose from 2.5% to 3.0%, with general expectations at 2.9%.