Japan Inflation Rate at 34-Month High of 1.4% in January


Consumer prices in Japan rose by 1.4 percent year-on-year in January of 2018, after a 1.0 percent gain in the prior month while markets estimated 1.3 percent. It was the highest inflation rate since March 2015, mainly driven by a jump in cost of food.

In January, prices of food increased by 3.2 percent year-on-year, following a 1.8 percent rise in December. It was the highest food inflation since November 2016, as cost surged for fresh food (12.5 percent from 4.8 percent), while continued to rise for fish and seafood (5.2 percent from 5.6 percent) and rebounded for fresh fruits (4.4 percent from -0.4 percent). Meantime, prices were flat for dairy product and eggs ( from -1.1 percent in a month earlier).

In addition, cost rebounded for clothes and footwear (0.5 percent from -0.3 percent) and went up at a faster pace for culture and recreation (0.5 percent from 0.4 percent). At the same time, cost increased less for: miscellaneous (0.5 percent from 0.7 percent); fuel, light and water charges (4.6 percent from 5.2 percent, as cost of electricity went up by 6.4 percent, after a 6.7 percent rise in the prior month) and transport & communication (0.7 percent from 0.8 percent). Inflation was steady for: medical care (1.6 percent) and education (0.4 percent). 

On the other hand, prices continued to fall for: housing (-0.1 percent from -0.1 percent) and furniture and household utensils (-1.2 percent from -0.9 percent)

Core inflation rate, which exclude fresh food, remained at 0.9 percent, it highest since March of 2015.

On a monthly basis, consumer prices went up 0.4 percent, compared to a 0.2 percent increase in the preceding month.

Japan Inflation Rate at 34-Month High of 1.4% in January


Statistics Japan l Rida Husna | rida@tradingeconomics.com
2/23/2018 1:40:35 AM