Japan Inflation Rate At 3-Month High Of 0.4% In April


Consumer prices in Japan rose 0.4 percent year-on-year in April of 2017, following a 0.2 percent rise in March and matching market consensus. It was the highest inflation rate since January, mainly driven by faster rises in cost of food and transport while cost of housing continued to fall.

Year-on-year, upward prices pressure came from: food (0.9 percent from 0.5 percent in a month earlier, namely fresh food: 1.8 percent from -0.4 percent); fuel, light and water charges (0.9 percent from -0.8 percent), medical care (0.2 percent from 0.5 percent), transportation and communication (0.3 percent from 0.2 percent), education (0.7 percent from 1.0 percent), culture and recreation (0.6 percent from 0.7 percent) and miscellaneous (0.2 percent from 0.4 percent). In contrast, cost declined for: housing (-0.2 percent from -0.2 percent), furniture and household utensils (-0.9 percent from -0.8 percent) and clothes and footwear (-0.1 percent from 0.6 percent).

Core consumer prices, which exclude fresh food, went up 0.3 percent on the year, following a 0.2 percent gain in the prior month while market estimated a 0.4 percent rise. It was the fourth straight month of increase and marking its highest level since April 2015. 

On a monthly basis, consumer prices went up 0.1 percent, following a 0.1 percent drop in the prior two months.

In Tokyo, consumer prices rose 0.2 percent in May, after a 0.1 percent drop in April while market estimated a flat reading. Core consumer prices, which exclude fresh food, increased 0.1 percent from a year earlier, compared to a 0.1 percent fall in the previous month. It was the first anual rise since December 2015.

Statistics Japan l Rida Husna | rida@tradingeconomics.com
5/26/2017 12:49:59 AM