For the second consecutive month, Japan’s inflation rate exceeded the Bank of Japan’s target level.

Annual core consumer inflation in Japan exceeded the target level of the Bank of Japan (BoJ) for the second consecutive month in May, revealing the pressure on the fragile economy of the country due to the sharp increases in raw material prices. Core consumer prices rose 2.1 percent in May compared to last year’s period, in line with expectations.

Core consumer inflation, which remained above the BOJ’s 2 percent target for the second consecutive month, increased by 2.1 percent in April, the fastest increase in seven years. Another core inflation indicator, which excludes food and energy costs from the calculation, increased by 0.8 percent in May compared to the same period of the previous year.

BoJ Chairman Haruhiko Kuroda has repeatedly stated that the central bank will not change its loose monetary policy until strong demand and income increases become the main factors driving inflation.