Japan Inflation Rate Rises To 0.4% In January

Consumer prices in Japan increased 0.4 percent year-on-year in January of 2017, higher than a 0.3 percent rise in December and in line with market expectations. Transportation cost posted the first annual gain since March of 2015 and prices went up faster for clothing and footwear and recreation and culture. Core consumer prices which exclude fresh food rose 0.1 percent on the year, following a flat reading in December. It is the first annual rise since December of 2015.

Year-on-year, prices rebounded for transportation and communication (0.3 percent from -0.7 percent in December), mainly private transportation (2.5 percent from 0.4 percent). In addition, inflation rose for recreation and culture (0.9 percent from 0.5 percent), clothing and footwear (1.1 percent from 0.6 percent), miscellaneous goods and services (0.4 percent from 0.3 percent). In contrast, prices rose at a slower pace for food (1.8 percent from 2.5 percent), namely fresh food (8 percent from 13.8 percent). Inflation also slowed for medical care (0.5 percent from 0.8 percent) and was steady at 1.5 percent for education. Prices of fuel, light and water charges fell less (-3.4 percent from -4.8 percent) and declined 0.2 percent for housing, the same as in December.
On a monthly basis, consumer prices edged up 0.1 percent, following a 0.2 percent decline in December.
In Tokyo, consumer prices fell 0.3 percent in February, following a 0.1 percent gain in January and worse than expectations of a 0.1 percent drop. Core consumer prices, which exclude fresh food, also declined 0.3 percent from a year earlier, the same as in the previous month and compared to expectations of a 0.2 percent drop. 

Statistics Japan l Joana Taborda | joana.taborda@tradingeconomics.com
3/3/2017 12:39:07 AM