Japanese Inflation Rate Creeps Higher in April

Consumer prices in Japan rose 0.6 percent on a year in April, slowly increasing as the effects of last year's decline in oil prices deteriorates.

An increase in Japan's sales tax hike last April inflated consumer inflation by 2 percentage point until March this year, according to Bank of Japan estimates. Still, there is a 0.3 point boost from the tax hike for this year's April CPI as some companies waited until May last year in passing on the tax hike.

Year-on-year, the biggest price increases were reported for: food (+2.7 percent); fuel, light and water (+2.2 percent), clothes and footwear (+1.8 percent) and education (+1.5 percent). Cost decreases were reported for: transportation and communication (-2.4 percent), culture and recreation (-0.1 percent) and Furniture and household utensils (-0.3 percent).

Core consumer prices, which includes oil products but excludes fresh food prices, rose 0.3 percent in April from a year earlier, much below the central bank's 2 percent target. The so-called core-core inflation index, which excludes food and energy prices rose 0.4 percent.

The consumer price index for Ku-area of Tokyo in May 2015 (preliminary) was 102.5 (2010=100), up 0.1 percent from the previous month, and up 0.5 percent over the year.

 Japanese Inflation Rate Creeps Higher in April

Statistics Bureau of Japan | anna@tradingeconomics.com
5/29/2015 1:09:44 AM