In this Aug. 10, 2021, file photo, people wearing face masks walk under the scorching sun in the Ginza Shopping district in Tokyo. (AP Photo/Eugene Hoshiko)

       TOKYO (Kyodo) -- Japan's core consumer prices dipped 0.2 percent from a year ago in July, as lower mobile data fees remained a big drag despite support from rising energy prices, government data showed Friday.

       Nationwide core consumer prices, excluding volatile fresh food items, marked the 12th straight month of decline, according to the Ministry of Internal Affairs and Communications, posing a challenge for the Bank of Japan in its quest to hit its 2 percent inflation target.

       The ministry changed the base year to 2020 from 2015 and the calculation method for the consumer price index. Under the new base year, the pace of decline in the core CPI slowed from 0.5 percent in June.

       The data reinforces the view that Japan is unlikely to see inflation accelerating and the BOJ will need to maintain its ultraloose monetary policy for an extended period.

       That contrasts with the United States which has been hit by inflation worries. The U.S. Federal Reserve is thought to be preparing to start stimulus tapering as early as later this year.

       Mobile data usage fees, which are given more weight in calculating the CPI than before the latest revision, tumbled 39.6 percent in July from a year ago as major Japanese carriers now offer cheaper plans after facing mounting pressure from the government.

       But higher energy prices and accommodation fees had a positive effect.

       Rising crude oil prices led the kerosene price to jump 25.2 percent and gasoline to rise 19.6 percent, ministry data showed.

       Accommodation fees gained 17.3 percent as hotel operators imposed higher prices with the number of customers increasing from a year ago due partly to a four-day holiday that coincided with the opening of the Tokyo Olympics.

       The government's subsidy campaign to spur local tourism was launched in July last year, triggering sharp falls in accommodation fees. It has been suspended nationwide since last December amid a resurgence of COVID-19 infection cases.

       "The impact of mobile phone fees is large," said Junichi Makino, chief economist at SMBC Nikko Securities Inc. "Excluding special factors such as the lowering of mobile fees and the 'Go To Travel' campaign, however, the core CPI is up 0.5 percent."

       "Although severe macroeconomic conditions continue, the CPI data does not change our view on the underlying price trend...and Japan is not headed toward deflation," Makino said.

       Japan is still struggling to rein in coronavirus infections due to the spread of the highly contagious Delta variant. The Japanese economy eked out growth in the April-June quarter driven by strong exports and capital spending, though private consumption remained weak.

       Concerns have grown that surging raw material costs could squeeze profits at Japanese companies as economists say many are reluctant to pass on those higher costs to consumers.

       "We will have to closely watch how energy prices move," a ministry official said.

       So-called core-core consumer prices, excluding fresh food and energy items, dropped 0.6 percent for the fourth straight month of decline.

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